Methods used to study the cost of public higher education in California were assessed, and eight limitations of previous studies were identified. The intent in reviewing cost-research methodology was to demonstrate that prior studies adopted a narrow approach to the topic. It was proposed that a study of costs must provide an overview of the whole system and must include as much of the total cost as possible. The original work deflated detailed costs for the California State University and the University of California for fiscal years 1970-1971 through 1982-1983. Full-time-equivalent students were adjusted because of changes in the distribution of academic level. It was found that, overall, expenditures per student unit averaged less than $3,000 over the 13-year period. To place costs in perspective, societal, political, and economic factors that helped shape the system were examined. In addition, California's total system of public education was compared to those of six other states. It was concluded that: costs can and should be studied; the task is not an easy one; calculations depend upon the researcher's interest; and a broad range of academic disciplines should be brought into the methodology of cost analysis. (Author/SW)