Accession Number:

AD0678514

Title:

AN INDEX FOR USE IN THE SELECTION OF COST EFFECTIVE SYSTEMS

Descriptive Note:

Corporate Author:

ELECTRONIC SYSTEMS DIV HANSCOM AFB MA

Personal Author(s):

Report Date:

1968-10-01

Pagination or Media Count:

36.0

Abstract:

Life-cycle cost alone is not sufficiently inclusive to be used as a yardstick for the selection of a cost effective system. Equal life-cycle cost does not imply equal cost effectiveness. An index is developed which in addition to life-cycle cost, includes cost effective life span, expenditure chronology, system phase-in structure, and the present equivalent cost of money expended at a future date. Although the index does not determine military effectiveness, it does permit the cost comparison of various systems or programs on a logically compatible and equivalent basis.

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE