This document provides the definitions and procedures for the costing portion of the NCHEMS Information Exchange Procedures (IEP). Also included is an overview of the eight steps and more detailed activities to be performed by institutions using related computer software to conduct the IEP cost study. The IEP cost study implementation steps are: develop the IEP activity structure, develop the instructional workload matrix, cross over direct expenditures to the IEP activity structure, calculate discipline direct unit analysis, allocate support costs/calculate full costs, and calculate full unit costs. (MJM)