The Impact of Accounting Methods on Cost Reduction Rates in Defense Aerospace Weapons System Programs

Abstract

This thesis investigates the relationship between accounting methods and cost reduction rates exhibited in Department of Defense aerospace weapons system programs. The role of three accounting methods (depreciation, inventory and investment tax credit) in predicting cost reduction rates are studies. Of the three accounting variables, only inventory was consistently associated with program cost reduction rate behavior at a statistically significant level. This findings suggests that in some contexts accounting methods may explain cost reduction slopes. But, the findings were contrary to the expected association between accounting methods and cost reduction, so a full explanation of how accounting methods are related to cost reduction awaits further research. Keywords: Learning curves, Statistical tests.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1988
Accession Number
ADA205228

Entities

People

  • Peter B. Melin

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aerospace Industry
  • Aircraft Industry
  • Aircrafts
  • Contractors
  • Contracts
  • Costs
  • Department Of Defense
  • Detection
  • End Items
  • Governments
  • Materials
  • Military Aircraft
  • Money
  • Simulations
  • Statistical Analysis
  • Statistical Tests
  • System Software

Readers

  • Government Contracting/Procurement.
  • Systems Analysis and Design

Technology Areas

  • Space