Working capital fund pricing policies : lessons from defense finance and accouting service expenditure and workload data
By: KEATING, Edward G
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Contributor(s): GATES, Susan M.
Material type: 
ArticlePublisher: Malden, MA : Blackwell Publishers, jan./feb.2002Public Administration Review: PAR 62, 1, p. 73-81Abstract: This article analyzes how service-providing government agencies should set the prices they charge to other governmental customers. Current Defense Working Capital Fund (DWCF) rules generally prescribe use to expected average cost transfer pricing. However, analysis of the Defense Finance and Accounting Service (DFAS), as an example, suggests DFAS has considerable fixed costs. These fixed costs are problematic under present DWCF pricing rules. Its customer demand levels fall short of expectations, DFAS renevues fall commensurably, but costs almost certainly do not. It would be more consistent with DFAS'S cost structure if DFAS could utilizie nonlinear pricing. Such a pricing approach would give DFAS (versus trying to do it themselves or turning it over to contractors). We hypothesize that insights from DFAS may be applicable to other governmental working capital fund entities as well
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
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This article analyzes how service-providing government agencies should set the prices they charge to other governmental customers. Current Defense Working Capital Fund (DWCF) rules generally prescribe use to expected average cost transfer pricing. However, analysis of the Defense Finance and Accounting Service (DFAS), as an example, suggests DFAS has considerable fixed costs. These fixed costs are problematic under present DWCF pricing rules. Its customer demand levels fall short of expectations, DFAS renevues fall commensurably, but costs almost certainly do not. It would be more consistent with DFAS'S cost structure if DFAS could utilizie nonlinear pricing. Such a pricing approach would give DFAS (versus trying to do it themselves or turning it over to contractors). We hypothesize that insights from DFAS may be applicable to other governmental working capital fund entities as well
Public administration review PAR
January/February 2002 Volume 62 Number 1
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