DoD-wide task forces first began developing output measures for the various business areas in 1989. The task forces were comprised of financial and nonfinancial representatives from the components and various Under Secretary of Defense (USD) offices. They determined organizational outputs for selected functional areas, identified sources of data and workload information and developed the mapping, a methodology of aligning costs to individual outputs.

The mapping process brings workload, financial and manpower data together to assign direct costs, allocate indirect costs and spread G&A costs to specific outputs. In unit cost development, costs and outputs are related or aligned by using this "mapping" process. In this process, cost data collected from the official accounting systems are grouped together by cost account codes. The costs are linked or mapped to particular outputs. This process results in cost-output relationships that provide management visibility of the total cost for a given output. The mapping for an activity should be continuously reviewed and updated in order to reflect accurately changes occurring. This process is graphically described in Figure 3.

Unit Cost Working Groups
Responsibility for developing unit cost in support areas resides with the Office of the Under Secretary of Defense (Comptroller). Development of unit cost for each support area is done by a Unit Cost Working Group, chartered to do the following:

To continuously develop and apply unit cost principles and practices to identified busi- ness [support] areas. Improve financial management information for managers of support functions that will facilitate cost conscious decisions. Perform special studies in support of improved financial operations of support functions related to this unit cost business area.

Each Group consists of appropriate subject matter experts from the DoD components that perform support functions in each defined business area. In accomplishing its mission, the Group identifies the output(s) of the business area and identifies the appropriate costs applicable to that business area. Other considerations such as standard report development and production and customer identification are also part of the Group's purview. Further, the Group is responsible for carefully documenting the results of their work. This includes documenting the appropriate costs and workloads residing in the various systems that will be used to create the unit cost reports and measure outputs.

The Group is the primary body responsible for continuously reviewing cost-output mappings and ensuring currency and accuracy. However, local activity managers should recommend changes when appropriate. The appropriate Unit Cost Working Group reviews all recommended changes prior to changes being implemented.