IN ADDITION, TERMS ARE DEFINED AND CODING SPECIFICATIONS ARE PRESENTED IN A SEPARATE SECTION. THE INITIALIZATION PHASE IS RESPONSIBLE FOR HANDLING ALL DATA INPUTS AND CREATES THE MASTER DATA FILE ON MAGNETIC TAPE. THE MASTER DATA FILE IS MAINTAINED BY THE USE OF AN UPDATE PROGRAM. IN THIS MANNER, ONLY NEW INPUT DATA CARDS ARE REQUIRED TO UPDATE THE MASTER FILE. THE COMPUTATION PHASE CREATES ACCOUNT RECORDS FOR ALL ORGANIZATIONAL POSITIONS AND PROCESSES FROM THE BASIC INPUT DATA. ALL NEEDED CALCULATIONS ARE PERFORMED TO GENERATE AN AUGMENTED MASTER FILE FROM WHICH THE REPORTS ARE GENERATED. FINALLY, THE REPORT GENERATION PHASE TAKES THE AUGMENTED MASTER FILE, EXTRACTS NECESSARY INFORMATION, AND COMPILES THE DATA INTO THE REPORTING FORMS. THIS VOLUME IS DESIGNED FOR SYSTEM ANALYSTS AND/OR PROGRAMMERS. FOR A USER-ORIENTED DESCRIPTION OF THE COST MODEL, SEE VOLUME ONE (NCJ-13503). VOLUME THREE, NCJ-13504, CONTAINS A DESCRIPTION AND ANALYSIS OF THE COMBINED ARREST AND COURT DISPOSITION REPORT OF THE CRIMINAL JUSTICE COST STUDY. (AUTHOR ABSTRACT)