Does Using Unit Cost make Sense?
Unit cost and unit cost resourcing embody sound managerial principles consistent with modern, proven business practices. As a financial management tool, unit cost focuses the attention of managers and employees on the process of producing outputs and the total cost to produce those outputs. This is a necessary and fundamental shift in focus from managing inputs to managing the production process and increasing cost awareness.

Managing with unit cost information empowers managers, but does not make management decisions. Using unit cost is not a substitute for informed management; however, enlightened managers will see the usefulness of using unit cost information. Providing unit cost information to every level of an activity enables employees to participate actively in process improvement. Unit cost encourages, complements and reinforces use of other modern management and accounting tools such as activity-based costing and process reengineering.

Using unit cost principles challenges the entire workforce as we recast the way we do business and make decisions. Success at improving government will happen only with active participation from all levels. Support activity employees at all levels, committed to instilling unit cost principles in their workplace culture, will provide more value for each defense dollar spent. Yes, managing with and using unit cost makes sense.