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<classification authority="sudocs">GA 1.13:AIMD/NSIAD-97-74</classification>
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 <subject>Labor costs</subject>
 <subject>Military cost control</subject>
 <subject>Overhead costs</subject>
 <subject>Ammunition</subject>
 <subject>Revolving funds</subject>
 <subject>Financial management</subject>
 <subject>Military appropriations</subject>
 <subject>Equipment maintenance</subject>
 <subject>Federal agency reorganization</subject>
 <subject>Losses</subject>
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<titleInfo>
 <title>Navy Ordnance: Analysis of Business Area Price Increases and Financial Losses</title>
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<abstract>The Navy ordnance business area increased prices 78 percent from fiscal
years 1994 through 1996 and incurred about $212 million in losses during
that same period. Most of these losses were due to actual overhead costs
exceeding budgeted overhead costs. This situation has led to significant
price increase that ultimately reduce purchasing power for the military
services&apos; operations and maintenance appropriation dollars. GAO is
concerned that excessive operating costs may exist in many of the
Defense Department&apos;s (DOD) logistics business activities and may be
causing operations and maintenance appropriations to be used
inefficiently. GAO will be examining additional DOD business activities
to determine the extent of the problem.</abstract>
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<note>Chapter Report</note>
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<subject>
 <topic>Labor costs</topic>
 <topic>Military cost control</topic>
 <topic>Overhead costs</topic>
 <topic>Ammunition</topic>
 <topic>Revolving funds</topic>
 <topic>Financial management</topic>
 <topic>Military appropriations</topic>
 <topic>Equipment maintenance</topic>
 <topic>Federal agency reorganization</topic>
 <topic>Losses</topic>
 <topic>Defense Business Operations Fund</topic>
 <topic>Navy Working Capital Fund</topic>
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  <partNumber>Title 10 Section 2208</partNumber>
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