Analysis of the Cost Accounting System for the Depot Maintenance Service, Air Force Industrial Fund

摘要

The purpose of this study was to analyze the Air Force Logistic Command Depot Maintenance cost accounting systems from the viewpoint of information provided to managers. The three basic objectives of the study were: 1) Determine how the costing system treated material, labor, and overhead expenses; 2) Identify the cost information the managers had available to aid their decision process; and 3) Identify changes to the cost accounting systems from three perspectives: the Department of Defense cost requirements, the theoretical cost systems, and the managers viewpoint. The current cost systems was analyzed from each of the these perspectives. Recommendations are provided to improve the current cost systems. The study recommends that the following areas of improvement will provide information which will aid the manager in the decision making process: 1) Improve the timeliness of providing information. 2) Develop an actual hour accounting system; 3) Improve the accuracy of direct material charges; 4) Provide management with rework costs; 5) Provide detailed information on equipment repair and maintenance costs; and 6) Use a standard cost system.