THE COST ANALYSIS IS A COMPONENT OF THE EVALUATION OF THE NATIONAL DEMONSTRATION IN CHILD ABUSE AND NEGLECT. THE PURPOSE OF THE ANALYSIS IS TO DETERMINE HOW PROJECT RESOURCES ARE ALLOCATED TO DIFFERENT PROJECT ACTIVITIES AND TO ASSESS THE UNIT COSTS OF VARIOUS SERVICES IN INDIVIDUAL PROJECTS. THE SYSTEM ESTABLISHED FOR COLLECTING, PROCESSING, AND ANALYZING INFORMATION FROM THE PROJECTS REQUIRES THE IDENTIFICATION OF DISCRETE PROJECT ACTIVITIES TO WHICH RESOURCES ARE ALLOCATED AND THE MONITORING OF PROJECT RESOURCES IN RELATION TO THESE ACTIVITIES. THE 41 SERVICE COMPONENTS IDENTIFIED ARE DEFINED, THE UNITS OF SERVICE USED WITH EACH COMPONENT ARE NOTED, AND THE COST ANALYSIS DESIGN IS DESCRIBED IN DETAIL. IMPLEMENTATION ISSUES THAT AROSE OUT OF A PRETEST OF THE DATA COLLECTION AND ANALYSIS SYSTEM ARE DISCUSSED, AND REFINEMENTS THAT ARE TO BE MADE IN THE COST ANALYSIS METHODOLOGY ARE NOTED. RESULTS OF THE PRETEST, INCLUDING COMPARISONS ACROSS PROJECTS AND FINDINGS FOR INDIVIDUAL PROJECTS, ARE REPORTED. COMPUTER PRINTOUTS CONTAINING COST DATA FOR THE 10 PROJECTS THAT PARTICIPATED IN THE PRETEST ARE APPENDED, TOGETHER WITH COPIES OF COST DATA-GATHERING FORMS. (LKM)