This document, one of 12 guides that have been developed to facilitate evaluation by and for local education agency (LEA) personnel in Illinois, covers cost and outcome analysis, a method of relating both monetary and nonmonetary returns to investments for the purpose of improving program planning and decision making. Throughout this activity, the term "benefits" connotes both educational performance and dollar outcomes. Both outcomes and costs are focused on in this activity so that costs are assessed in relation to benefits. The guide has been designed to aid the person who has responsibility for leading this particular activity. It includes three sections. The first section on preliminary considerations contains a brief explanation of this evaluation activity and the necessary steps to prepare for the evaluation undertaking. The second section of the guide is a procedure/ task breakdown, which outlines suggested tasks for conducting the evaluation activity. The third section of this guide contains supporting documents, including information handouts, example documents, and references. (KC)