Classification System for Indirect Costs of Defense Contractors in the Aircraft Industry,
AIR FORCE ACADEMY COLO
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The document discusses contract cost analysis as related to defense contractors in the aircraft industry is a process whereby procurement cost analysts and contract auditors review and evaluate the cost estimate supporting a companys contract proposal. There are two types of costs subjected to cost analysis--direct and indirect. This study examines how indirect or overhead costs are viewed in the process of cost analysis and negotiation. Inadequacies are discussed, and the significance of indirect costs relative to total costs within the aircraft industry is established.
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