To estimate the value of the demonstration resources identified in the previous chapter, we defined a specific time period for which costs would be estimated, identified the resources used in that period, and then sought information on actual costs incurred or alternative measures of resource value. Once total resource costs were estimated, we calculated unit costs in order to standardize costs in relation to the extent of participants' periods of AFDC receipt and participation in major demonstration activities. In Section A below, we define the demonstration period we selected as the focus for analysis of costs. In Section B, we describe how we measured the three major elements of total resource costs -- reported costs incurred directly by the demonstration programs, estimated implicit costs of services provided at no charge to the programs by other agencies, and state central management costs. This discussion forms the basis for the data that are presented and interpreted in Chapter IV.