COST-BENEFIT ANALYSIS HAS TWO MAIN USES IN CRIMINAL JUSTICE RESEARCH: TO SUPPLY VALUATION INFORMATION FOR EVALUATIVE RESEARCH AND TO MAKE EXPLICIT THE AREAS IN WHICH BASIC RESEARCH IS NEEDED. BENEFITS REPRESENT WHAT SOCIETY IS WILLING TO PAY FOR PROGRAM ACCOMPLISHMENTS; COSTS, THE PRICES OF REQUIRED RESOURCES IN THEIR NEXT BEST ALTERNATIVE USE. WHERE MARKET PRICE DATA ARE UNAVAILABLE, BENEFITS AND COSTS MUST BE IGNORED, LEFT UNQUANTIFIED, OR QUANTIFIED THROUGH PROXY MEASURES. THE FOUR MAJOR CATEGORIES OF COSTS AND BENEFITS OF CRIMINAL JUSTICE PROGRAMS ARE THOSE RESULTING FROM CHANGES IN THE CRIME RATE, THOSE RESULTING FROM CHANGES IN CRIMINAL JUSTICE SYSTEM EXPENDITURES, THOSE RESULTING FROM PROGRAM PARTICIPANTS' INCREASED WELLBEING, AND THOSE RESULTING FROM CHANGES IN PERCEIVED JUSTICE OR EQUITY. BENEFITS AND COSTS ASSOCIATED WITH PRETRIAL DIVERSION PROGRAMS A MANAGEMENT INFORMATION SYSTEM FOR COURT SCHEDULING, LEGALIZING VICTIMLESS CRIME, AND MORE INTENSIVE PATROLLING OF HIGH CRIME AREAS ARE ILLUSTRATED. REPRESENTATIVE COST AND BENEFIT CALCULATIONS FOR A HYPOTHETICAL PRETRIAL DIVERSION PROGRAM ARE PRESENTED. RESULTS SHOW THAT COST-BENEFIT ANALYSIS CONSIDERS TOTAL AMOUNTS BUT NOT THE DISTRIBUTION OF BENEFITS AND COST. IT IS IMPORTANT TO CONSIDER WHETHER CRIMINAL JUSTICE PROGRAM COSTS AND BENEFITS ACCRUE TO DIFFERENT GROUPS AND WHETHER TRANSFER PAYMENTS WHICH DO NOT APPEAR EXPLICITLY IN THE CALCULATIONS OUGHT TO BE BROUGHT INTO THE ANALYSIS. THE ANALYSIS SHOWED THAT COST-BENEFIT ANALYSIS PROVIDES A USEFUL ACCOUNTING FRAMEWORK AND THAT IT SHOWS THE IMPORTANCE OF TRYING TO MEASURE PREVIOUSLY UNMEASURED EFFECTS. THE SENSITIVITY OF CALCULATIONS TO UNDERLYING ASSUMPTIONS AND MODELS AND THE GENERALITY OF RESULTS ARE IMPORTANT ISSUES INVOLVED IN SUCH ANALYSIS. FOOTNOTES WHICH INCLUDE REFERENCES ARE INCLUDED. (CFW)