This document presents the results of testing upon two groups of graduate-level, preservice, elementary school, student teachers to compare the cost and effectiveness of a performance based teacher education program with a subject-centered teacher education program at the San Diego State University. Six null hypotheses were tested to determine significance of difference in (1) knowledge levels on approved program objectives for the two groups; (2) student teacher performance as measured by the Reciprocal Category System for the two groups; (3) the degree of individualized instruction as measured by the Descriptive Observational Record for Individualization of Instruction Inventory for the two groups; (4) children's perception of teacher performance for the two groups; (5) the costs of the subject-centered program versus the costs of the competency-based program; and (6) the cost-effectiveness of each of the two programs. A follow-up study was conducted on all employed graduates of both programs, utilizing the same measurements to determine if the preservice training in teaching skills was implemented in the graduates' classrooms. The competency-based program appeared to have been operating in a fashion superior to the subject-centered program in all measures under study. The cost-effectiveness analysis identified six additional benefits for the competency-based program: student knowledge, individualized instruction, fosterage of self-esteem, rapport, unreasonable negativity, and interactional competence. The follow-up study continued to support the results of the original study. (MJB)