PREFACE

The purpose of this paper is to present a theory of expenditure analysis and control that the writer believes will prove useful to comptrollers or fiscal directors of the naval service, in overcoming the following two unsatisfactory aspects of naval management: 1. Imbalances in both manpower and material supply in related forces and operations, which result in failure to fully realize the potential strength available. 2. The practice of operating personnel at many planning levels to regard expenditure analysis and control solely as a budgetary or logistic accounting consideration, which results in failure to employ the financial or economic factor in command decisions. The writer has concluded that these two difficulties stem from: 1. Original imbalances in budget programs because of lack of corre-lation with operations in planning, followed by divergence in expenditure due to lack of coordination of logistic effort along the same lines as th