Improving the cost information management system: The case study of defense materials industry in Korea

Authors

Jae Hun Moon, Korea University
Young Jun Kim, Korea University
In Shik Seol, School of Management at Clark UniversityFollow

Document Type

Article

Abstract

This study shows how to develop and apply an objective cost equation model through accounting engineering approach with the focus on indirect processing costs. The authors provide a cost estimation method that can be used by both government and contractors to predict and calculate reasonable processing costs acceptable by both parties. By applying the suggested approach, both parties can utilize the future estimated cost or target cost as a basic cost for planning, budgeting, bid pricing and contract pricing.

Publication Title

Actual Problems of Economics

Publication Date

2016

Volume

181

Issue

7

First Page

131

Last Page

141

ISSN

1993-6788

Keywords

ceiling price, cost management, defense sector, indirect cost, private contractors, target cost

Repository Citation

Moon, Jae Hun; Kim, Young Jun; and Seol, In Shik, "Improving the cost information management system: The case study of defense materials industry in Korea" (2016). School of Business. 115.
https://commons.clarku.edu/faculty_school_of_management/115