Accession Number : ADA205228


Title :   The Impact of Accounting Methods on Cost Reduction Rates in Defense Aerospace Weapons System Programs


Descriptive Note : Master's thesis


Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA


Personal Author(s) : Melin, Peter B


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a205228.pdf


Report Date : Dec 1988


Pagination or Media Count : 73


Abstract : This thesis investigates the relationship between accounting methods and cost reduction rates exhibited in Department of Defense aerospace weapons system programs. The role of three accounting methods (depreciation, inventory and investment tax credit) in predicting cost reduction rates are studies. Of the three accounting variables, only inventory was consistently associated with program cost reduction rate behavior at a statistically significant level. This findings suggests that in some contexts accounting methods may explain cost reduction slopes. But, the findings were contrary to the expected association between accounting methods and cost reduction, so a full explanation of how accounting methods are related to cost reduction awaits further research. Keywords: Learning curves, Statistical tests.


Descriptors :   *ACCOUNTING , LEARNING CURVES , INVENTORY , RATES , COSTS


Subject Categories : Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE