To determine the effectiveness of the computer assisted instruction/computer management system (CAI/CMS) as an alternative to conventional methods of compensatory reading instruction, a cost benefit study evaluated elementary, middle, and high school reading programs in the Columbus, Ohio, school district. Analysis was based on cost outlay for the computer laboratory, teachers, and aides, and comparisons between CAI/CMS units and conventional laboratories were carried out in terms of enrollment, attendance, and achievement. The overall program cost and cost per pupil were calculated according to the number of pupils in the program and pupils per teacher. Among the major findings were the following: (1) the cost per pupil was greater in the CAI/CMS groups than in the regular groups at all three grade levels; (2) normal curve equivalence gains were nearly the same for the regular and CAI/CMS groups at the elementary level, though this situation was substantially reversed at the middle school level; and (3) more pupils per teacher were served in the CAI/CMS groups than in the regular groups, particularly at the elementary level. Based on these findings, it was recommended that only the middle school CAI/CMS program be continued and that the others be further evaluated. (Statistical data detailing cost-benefit analysis base figures and comparisons are included.) (JD)