ACC Practice Center > Life Cycle Logistics > Product Support Manager... > Product Support Strategy... > Business Case Analysis > Naval Postgraduate School...

Naval Postgraduate School (NPS) Unit Cost Handbook

References

Helpful Vote

Long Description: This Naval Postgraduate School (NPS) Unit Cost Handbook is intended to acquaint Department of Defense (DoD) executives and managers with the subject of unit cost. It provides an overall familiarization with unit cost and the management challenges, opportunities and benefits unit cost management offers. Unit cost principles underlie a management methodology that is applicable to many organizations, whether operations are funded by direct appropriations or financed through a revolving fund. The aim of unit cost is to relate total cost to the work or output produced. To improve use of resources, decision makers must understand their mission and the work required to perform that mission. They must also have visibility of total cost, including costs that historically have been viewed as "free" such as military labor or capital equipment.
URL Title: Naval Postgraduate School (NPS) Unit Cost Handbook
Web Site Address: http://www.nps.edu/Academics/Centers/DRMI/docs/Unit Cost Handbook-web.pdf
Benefit/Value: Unit cost focuses management attention on relating total cost with work accomplished (output produced). Outputs produced must be specifically identifiable and quantifiable. Costs are captured and categorized as: direct, indirect, and general and administrative costs. The unit cost (or average total cost) is the sum of these costs, divided by the number of units of outputs produced. Output and cost data are collected through financial and nonfinancial processes and systems. Unit Cost Reports provide data on the execution of a program in unit cost terms.