A description is provided of the format used to estimate the costs associated with the development and operation of a computer-managed instructional system. Total costs are conceptualized as a function of the number of hours devoted to each stage of the project and the cost per hour. The data management systems which were developed required expenditures for personnel and computer time; instructional system development necessitated expenditures in these two categories and also for copyright fees and supplies. Operational costs involved outlays for personnel, computer time, and instructional materials. Also discussed are the uses of cost information and the recent specifications by the federal government of the cost accounting procedures which must be used in federally funded projects at institutions of higher education which receive more than $100,000 in federal funds per year. (PB)