Discussion focuses on how cost analysis contributes to key aspects of court management, including planning, budgeting, and reporting. Courts are shown how cost analysis can assist the courts in responding more effectively to growing fiscal pressures. Basic terminology in cost analysis is presented, and distinctions are made between costs and expenditures, direct and indirect costs, and personnel and nonpersonnel costs. The way these costs can be related to specific organizational units and activities is explored. The document argues for deciding critical costing issues in advance of collecting or analyzing any cost data. Unit costing is recommended as a way of accommodating changes in caseload or total budget, in terms of the outcome of the costing effort. Also explained are the measurement of direct personnel costs, direct nonpersonnel costs, and indirect costs. Sources of cost data are identified, and estimation techniques are provided when the existing accounting system contains information that is incomplete or incompatible with the cost objective. In addition, a discussion describes how to report the results of the analysis to top management and other potential users. Detailed examples of how three court systems (Bucks County, Pa.; Colorado; and Los Angeles, Calif.) measure their costs are provided, along with descriptions of overall costing practices and the results of specific cost studies. Numerous examples from State and local trial courts are used to illustrate the 'real world' of analyzing costs in the courts. 43 exhibits.