A thorough examination of the library and information science literatu
re reveals problems with current reference service cost studies: they
focus on individual reference services yet these services are difficul
t to differentiate; units of analysis used in these studies are variab
le; cost measures lack reliability and validity; and difficult allocat
ion decisions are made arbitrarily. Reference service cost studies may
be improved by developing detailed categorizations of units of analys
is; increasing sample size; avoiding block of time measurement conside
ring library services as a whole; determining alternative methods of a
llocating shared and indirect costs; and matching cost data with decis
ion-making needs. Research is needed to determine if new approaches ar
e feasible and cost effective. Lessons may be learned from previous re
ference service cost studies and from techniques employed in other ser
vice industries.