방위산업 원가보상제도의 분석

Abstract

The main purpose of this research is to analyze the cost reimbursement system for defense

contractors in Korea and propose an improved one. Current system induces defense

contractors to continue their old labor-intensive production method because reimbursement

is direct labor cost based. Since reimbursement is determined by the name of accounts based

on financial reporting classification, quality improvement effort, technology innovation and

other investment activities cannot be appropriately reimbursed. Because the capital charges

for the investment base is included in the maximum reimbursement rate, there exists a

negative incentive to invest additionally. Cost reimbursement system needs to be redesigned

to induce capital investment, innovation and quality improvement.