A simplified method to gather and analyze cost data is presented for administrators of Handicapped Children's Early Education Programs, and specifically for members of the Technical Assistance Development System, North Carolina. After identifying benefits and liabilities associated with analyzing program costs, attention is focused on the internal and external audiences who need program cost data, the desired outcomes resulting from providing certain cost information to certain audiences, and general requirements of a cost analysis system. It is suggested that designing a cost analysis system for early intervention programs would involve determining program components and the specific tasks/activities, along with categories of cost data (personnel and nonpersonnel costs, and in kind contributions). Implementing the cost analysis system is discussed in terms of a trial period, staff support, data control and confidentiality, and leadership and coordination. Additional areas that are addressed include: analyzing total program costs and unit costs, types of decisions/judgments that will be encountered by categories of audiences; and the mechanics of developing reports, including a model for communicating with a specified audience for a specific purpose. Supplementary materials include: program costs form, sample activity code descriptors, a daily time/activity log, a sample line item budget matrix, cost reporting worksheets, and a list of 11 cost and benefits reports. (SEW)