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Management of the total military force requires a determination of the proper role of the Selected Reserve. Both the executive and legislative branches of the government have increasingly looked to an expansion of the reserves as a potentially cost-effective way of maintaining the capability requirements of the total force. This trend has created the need for a cost methodology capable of supporting active/reserve force-mix decisions. This report presents a methodology for assessing the cost consequences of changing the mix of active and reserve units in the total force. The authors argue that the key to the usefulness of active/reserve force structure cost studies lies in a proper specification of the problem. Toward that end, they developed a structured accounting methodology for identifying and costing the resource, activity, and mission consequences of force structure change.

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