An analysis of the cost-volume relationships within the aircraft program of the Naval Air Rework Facility, Alameda, California
Ferriman, Robert L.
Liao, Shu S.
Greer, Will R., Jr.
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The purpose of this research project is to examine the cost behavior of the Naval Air Rework Facility, Alameda, California, aircraft program in relation to variations in aircraft rework workloads, and to develop cost-volume relationships useable in support of pricing and workload decisions. Analysis of four years of quarterly direct and indirect cost data provided the base from which total cost-volume models were derived for the four aircraft program segments (A-6, P-3, S-3, and A-3). The results of this study indicate that significant cost-volume relationships exist not only with the direct costs but also with many associated indirect aircraft program costs. The study further suggests that other factors, such as rate and direction of volume changes and levels of personnel strengths, may have predictable affects on aircraft reworks costs.
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