Cost calculation model for a combat operation of the Serbian Armed Forces

Abstract

Successful countering of modern challenges, risks and threats requires making optimal decisions about how to use the forces, often during combat operations, to accomplish the assigned missions and tasks. Optimality is reflected in maximum rationalization of the operation costs, or in the selection of the mode of performing the operation, which will contribute to successful implementation of the mission at the least cost possible. Limited and, as a rule, insufficient funds impose a continuing need for costeffective, rational and efficient use of the funds available. Therefore, the place and role of the cost of operations in the decision-making process in peace and in wartime, should be given special importance, especially bearing in mind that the costs are one of the most important economic categories. The methodology of calculating the cost of a military operation varies depending on the economic systems of the countries that perform the operation, their level of development, the type of operation, etc. Its cost price depends on several elements: the objective of the operation, type, duration, resources required for the achievement of the objective, etc. The regulations, under which the material and financial operations are performed in peacetime, provide their performance in wartime as well, but with necessary adjustment to specific war situation. This applies to all government institutions and the economy of Serbia, and hence to the defense system as well. The defense spending is planned in peacetime, according to the approved procedure. Pursuant to the above, operations planning from the viewpoint of expenditures and costs should be done in compliance with the regulations under which material and financial operations are carried out in peacetime. The paper aims to present the way to determine the cost of a combat operation in terms of making optimal decision, which ensures the accomplishment of the task of using the forces in an operation at optimal cost. The cost price of a combat operation refers to the consumption of human and material resources. The implementation of activities aimed at effective provision, deployment and use of human and material resources creates a precondition for achieving the objectives of the operation.