COMPWARE: A Proposed Method of Comparing DOD Depot Storage Facility Performance Based on Financial Statement Analysis.
Abstract
The study traces the development of COMPWARE, a proposed method of comparing DOD depot storage facility cost-effectiveness and efficiency, using digital computer techniques. The method herein described is unique because it departs from the cost-benefit analysis traditionally employed in the DOD's non-profit activities. Instead, it uses conventional financial statement analysis concepts. This is done through the assignment of sliding dummy sales prices to a facility's output and hence the generation of a 'dummy revenue'. Magnitudes of these dummy sales prices are determined by the priority of the requisition and the promptness with which the order is serviced. Therefore, revenues are a measure of a facility's level of activity and its responsiveness to demand. Costs of goods sold are computed as the facility's annual operating cost including depreciation. A conventional Income Statement is generated and Returns on Investment and Sales are calculated. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1972
- Accession Number
- AD0754165
Entities
People
- George R. Hennigan
Organizations
- Air Force Institute of Technology