This report presents partial findings from the DoD Cost Factor Project. Volume 1 (R-4078/2-PA&E) describes the Army decisionmaking process, and this volume describes data sources and methods used to develop cost factors. "Cost factors" are measures used to estimate the cost implication of changes in defense missions, force structures, weapon systems or operating levels. They include recurring operating and support costs, nonrecurring operations and maintenance costs, and investments costs, such as facility construction. The study also examines intermediate factors, such as personnel pay rates, that are used to develop cost estimates.