This manual provides basic methodologies and procedures for implementing cost analysis policies. It is one part of the essential set of instructions for analysts working in the cost and economic analysis area. Another part, Army Regulation (AR) 11-18, The Cost and Economic Analysis Program, specifies the policies and responsibilities for cost and economic analysis throughout the Army. The last part, Department of the Army Economic Analysis Manual, provides the methodologies and procedures for implementing economic analysis policies. The specific goal of this manual is to help the cost analyst serve the customer.