The life cycle costing viability for the economic assessement of military investments

La viabilidad del coste del ciclo de vida para la evaluación económica de inversiones militares

Authors

  • Andrés Navarro-Galera
  • Rodrigo Iván Ortúzar Maturana
  • Francisco Jose Alcaraz-Quiles
DOI: https://doi.org/10.1016/j.rcsar.2015.06.001
Keywords: Life cycle costing, Military investments, Efficiency, Governmental-projects economic assesment

Abstract

Previous studies and the pronouncements by international organisations (NATO, GAO) have considered the Life Cycle Costing (LCC) as the most advanced methodology for the economic assesment of the efficiency of military spending. This provided a good opportunity for researchers considering the forced austerity and budget constraints of governments. In any country, the viability of LCC requires prior compliance with the requirements issued by such organisations for the implementation of this model. The aim of this paper is to identify the improvements required to enable the implementation of LCC in economic evaluation systems of the Armed Forces of Spain. A study was performed on the adequacy of current Spanish economic systems to the requirements of LCC, as well as conducting a comparative analysis with the systems of European and American countries. This enabled reforms to be identified in order to achieve the feasibility of this model in the Spanish Ministry of Defense, based on the strengths and weaknesses detected in our empirical research.

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Published
01-07-2016
How to Cite
Navarro-Galera, A., Ortúzar Maturana, R. I., & Alcaraz-Quiles, F. (2016). The life cycle costing viability for the economic assessement of military investments: La viabilidad del coste del ciclo de vida para la evaluación económica de inversiones militares. Revista De Contabilidad - Spanish Accounting Review, 19(2), 169–180. https://doi.org/10.1016/j.rcsar.2015.06.001
Issue
Vol. 19 No. 2 (2016)
Section
Articles

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