text: Chapter 5
  Figure 5-5. Example of full cost concept for a BCTs operational readiness
  5-69. As the model suggests the full cost of OR for a BCT considers all costs involved to include direct
  costs, indirect costs, and the costs of Army and Non Army activity support provided to the BCT. In this
  example, the BCT is the responsibility segment to the higher headquarters since the BCT commander
  reports directly to the corps/div commander, the BCTs resources (funds, personnel, and equipment) and
  results of operations can be clearly distinguished from those of other BCTs within the higher headquarters
  task organization. The higher headquarters (corps or div) is the reporting entity in this example.
  Subordinate battalions to the BCT could represent subordinate cost centers when developing this OR cost
  model. In this illustration, the financial manager designed the cost models to derive the full cost of
  readiness for the command and use this information to provide valuable cost advice to the BCT
  commander. If the BCT commander wants to raise the unit’s OR above 90%, the commander requires
  information on the cost consequence of decisions. The cost model can predict the increase costs for each
  incremental increase to OR and inform the commander on the concomitant impact on resources of each
  change in OR. The financial manager develops the cost model and interprets the data from the cost model
  to develop useful and relevant information to improve the commander’s decision-making and fiscal
  stewardship. This scenario is just one example of the application of cost management.
  COST MANAGEMENT DURING CONTINGENCY OPERATIONS
  5-70. Contingency missions include both overseas contingency operations (OCO) and CONUS missions
  such as disaster relief and humanitarian assistance. In contingency operations, cost management acquires a
  heightened importance given that costs are funded initially from existing available funds, and Army units
  and activities must capture and report costs through their headquarter elements to the Department of the
  Army to seek reimbursement and additional funding. Financial managers must comply with reporting
  requirements prescribed by DOD FMR 7000.14-R, Volume 12, chapter 23, Contingency Operations (under
  revision).
  5-71. At the strategic level, the Under Secretary of Defense (Comptroller) (USD[C]) is responsible for
  overall financial policy concerning contingency operations and works with the Under Secretary of Defense
  (Policy) (USD(P)) to determine the most responsive method of financing contingency operations. In
  addition, USD(C) is responsible for pursuing prompt reimbursement as appropriate from multinational
  organizations, other nations, and other U.S. agencies for support given to those agencies. The Chairman of