Cost Element Handbook for Estimating Active and Reserve Costs
RAND CORP SANTA MONICA CA
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Cost analysts are dependent on the availability and accuracy of cost data to complete their work. This report provides a handbook of detailed information useful for estimating the various elements of cost associated with changes to the active and reserve force structure. Its primary purpose is to help ensure that analysts consider all appropriate categories of cost in their work and that they use methods that are transparent, reproducible, and consistent across the Services and the active and reserve components. Before using this reference, problems must be defined. At a minimum, cost analysts must have identified 1 one or more feasible solutions to a problem 2 the units that would be affected, either directly or indirectly, by those alternatives and 3 the implications of the proposed changes on each affected unitss personnel, equipment, and peacetime operations. Assistance in fully defining problems is provided by a companion research report. R-3748-FMPPAEJCS develops and presents a structured, accounting approach to determining the resource implications of activereserve force structure changes, and shows how those results can be mapped into the individual elements of cost presented in this volume.
- Economics and Cost Analysis
- Military Forces and Organizations