Accession Number : ADA194894

Title :   Cost Management - Reform Now.

Descriptive Note : Student rept.,

Corporate Author : AIR COMMAND AND STAFF COLL MAXWELL AFB AL

Personal Author(s) : Varney, Garry C

PDF Url : ADA194894

Report Date : Feb 1988

Pagination or Media Count : 34

Abstract : The manufacturing environment within the defense aerospace industry is changing. This change, resulting from increased automation, changing cost trends, and changing DOD acquisition policies, is forcing industry to employ new methods of cost management to effect better control and planning of weapon system cost and capital expenditures. present direct labor-based accounting systems are inadequate in an automated environment in assisting management in product costing/pricing, cost containment, and investment decision-making since direct labor is yielding to indirect costs as the product's significant cost driver. To compete and grow in the future, industry must rethink their cost management practices. The Westinghouse Advanced Cost Management System (ACMS) is one of the first conceptual designs of a modern system which addresses cost management needs in the automated factory. Industry and DOD must work jointly to build on the ACMS concepts and quickly implement a system which will allow for better control of defense spending.

Descriptors :   *MANAGEMENT PLANNING AND CONTROL, *COST ANALYSIS, ACQUISITION, AEROSPACE INDUSTRY, AUTOMATION, CONTAINMENT(GENERAL), COSTS, DECISION MAKING, DEPARTMENT OF DEFENSE, INDIRECT COSTS, INDUSTRIAL PLANTS, INVESTMENTS, LABOR, MANUFACTURING, PATTERNS, POLICIES, WEAPON SYSTEMS

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE