A time-driven approach to capability costing

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Authors
  1. Rempel, M.
Corporate Authors
Defence Research and Development Canada, Centre for Operational Research and Analysis, Ottawa ON (CAN)
Abstract
We present a novel method for calculating the cost of a military capability. Using time-driven activity-based costing, a force structure’s costs are attributed to the capabilities it provides based on the how many hours the force structure spends conducting readiness training for each capability. The cost of a capability is the sum of the attributed costs plus the cost of readiness training. We present five examples that highlight unique aspects of force structures, and show how these aspects are accounted for within the method. Lastly, we discuss several implementation issues, data requirements, and how the output of this approach may be used within capability-based planning to inform resource allocation decisions.

Il y a un résumé en français ici.

Keywords
capability-based planning;capability costing;time-driven activity-based costing
Report Number
DRDC-RDDC-2015-R179 — Scientific Report
Date of publication
01 Sep 2015
Number of Pages
42
DSTKIM No
CA041392
CANDIS No
802618
Format(s):
Electronic Document(PDF)

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