Allocating the Increased Operational Costs in Retail Prices at the Defense Electronics Supply Center as a Result of Defense Management Report Decision 901
Abstract
Defense Management Review Decision (DMRD) 909 requires inventory control points managing Department of Defense (DoD) stock-funded material to include all the costs of doing business in the stock fund surcharge. The inventory control points will no longer receive direct operational and maintenance (O and M) funding in the defense budget. As a result of DMRD 901, for fiscal year 1991, the Defense Electronics Supply Center (DESC) must recoup, through its operational surcharge. $84.1 million of its own operational costs and $100.9 million of DLA Headquarters and support activity costs (a total of $185.0 million). The increased surcharge has significantly raised the retail price DESC's customers must now pay for allocating costs by changing the allocation base and examine the use of a fixed order Surcharge, Defense Management Report Decision, Stock Fund, DLA, DESC charge to determine their effect on the retail prices of materials.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1991
- Accession Number
- ADA246967
Entities
People
- Michael G. Ahern
Organizations
- Naval Postgraduate School