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NAVAL POSTGRADUATE SCHOOL Monterey, California19960220 040THESISNONPARAMETRIC COST EVALUATION OF THE DEPARTMENT OF DEFENSE\'S SMALL PARCEL SHIPPING PROCEDURES by Douglas M. Murphy September, 1995
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To fill out the nonparametric cost evaluation form, follow these steps:
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Start by gathering all the relevant cost data for the project or process you are evaluating.
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Identify the different cost categories such as materials, labor, equipment, overhead, etc.
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Assign a numerical value to each cost category based on its importance or contribution to the overall cost.
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Determine the weighting factor for each cost category based on its significance in the evaluation.
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Calculate the weighted cost for each category by multiplying the numerical value with the weighting factor.
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Sum up the weighted costs to obtain the total nonparametric cost evaluation.
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Analyze the results and interpret the findings based on the objectives of the evaluation.
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Document the evaluation process, methodology, and results for future reference.
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Nonparametric cost evaluation is a method used to assess costs without assuming a specific functional form for the relationship between inputs and outputs, often relying on observed data.
Organizations or individuals engaged in industries where cost assessment is necessary for compliance with regulations, or to apply for funding or grants may be required to file a nonparametric cost evaluation.
To fill out a nonparametric cost evaluation, one must gather relevant financial and operational data, compile costs associated with different outputs, and provide a clear summary of how these costs relate to the produced outputs without assuming a specific distribution.
The purpose is to accurately evaluate costs associated with production processes, enabling organizations to make informed decisions and improve efficiency without the constraints of parametric assumptions.
Information that must be reported includes detailed cost data, production volumes, variable and fixed costs, and any relevant contextual information that could influence the evaluation.
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