This report provides an illustrative discussion of the nature of a cost-effectiveness study in a higher education setting. It focuses on the cost-effectiveness of two field-based teacher preparation courses taught in a college of education. It is not a comprehensive cost analysis study, but an exploratory review of the dimensions and problems of such a study to address specific, restricted program management questions. The cost analysis problem, costing of alternatives, discussion of costs, estimating the effects, and relating costs and effects are discussed. The appendices include: cost effectiveness of teacher preparation courses (possible program ingredients and cost items), final evaluation of student teaching form, and end of student teaching evaluation ratings and grade point averages. (PN)