Implementation of a Cost-Accounting System for Visibility of Weapon Systems Life-Cycle Costs
INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA
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The lack of a common, robust cost-accounting process is one of the biggest obstacles to controlling and managing the cost of weapon systems for their useful life. Existing DoD accounting systems neither communicate with each other effectively nor organize program information in a way that is most useful to management. As a result, the DoD accounting systems provide only limited insight into the total cost of buying, operating, maintaining, and disposing of DoD inventories. The DoD Acquisition Reform Goal 10 required DoD to define requirements and establish an implementation plan for a cost-accounting system that provides routine visibility into weapon system life-cycle costs through activity-based costing and management. The system must deliver timely, integrated data for management purposes to permit understanding of total weapon costs, provide a basis for estimating costs of future systems, and feed other tools for life-cycle cost management.
- Economics and Cost Analysis