Gain-Sharing, Success- Sharing and Cost-Based Transfer Pricing: A New Budgeting Approach For The Department of Defense (DoD)
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The objective of this paper is to model a new incentive structure for government activities that rewards cost-savings and efficiencies. The model combines "cost-based pricing" (see Pavia ) with the popular business practice of "gain-sharing" (see Welbourne & Mejia ), and a new incentive program we call "success-sharing".
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