Military Systems Cost Analysis (A Summary Lecture for the AFSC Cost Analysis Course)

by Gene Fisher

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This summary lecture for an AFSC course given in 1962 discusses cost analysis as it refers to the determination of the probable economic resource impact of future Air Force weapon and support systems. Five major aspects of cost analysis are stressed: understanding the problem or context in which the cost estimates are to be used, assembling the basic data, deriving cost-estimating relationships, using these relationships to make an estimate, and presenting the results. Both hardware and nonhardware system cost components are discussed, and the sensitivity of total system cost to variations in the cost and characteristics of these components is considered.

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