COSTING TOMORROW:S WEAPON. SYSTEMS
Abstract
Costing tomorrow's weapon systems is a difficult and uncertain but essential process: essential for budget preparation and essential for major program decisions. As far as the first application is concerned it is difficult to conceive of budgeting for a weapon system project without cost estimates, regardless of their validity. The decision-making application is more controversial. As a result of some very low estimates in the past, some analysts have taken the position that the use of cost estimates in systems analysis should be minimized or even eliminated. The basic flaw in this argument is that poor cost estimates are merely a reflection of the in-ADEQUACIES OF WEAPON SYSTEM DESIGNERS AND PLANNERS. Cost analysts work from a program description provided by the other members of the team, and by far the most significant variance between initial estimates and final costs are due to changes in the original requirements rather than to an inappropriate price tag hung on an unchanging configuration. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1962
- Accession Number
- AD0287997
Entities
People
- David Novick
Organizations
- RAND Corporation