Jennifer E Pace

Organizations varied in how they financed these efforts-some increased internal spending or reallocated resources-and in receipt of external funding.

The Defense Finance and Accounting Service (DFAS) provides finance and accounting services to customers within the Department of Defense. The authors examine the DFAS pricing structure and its impact on customer demand, the agency's workload, and equity in pricing. The authors found that the DFAS's uniform pricing for finance outputs creates cross-customer subsidization, suggesting a need for nonlinear, customer-specific pricing. The authors also examine whether any negative effects arose from the October 1999 switch from unit billing to hourly billing for DFAS accounting work and found no significant evidence that they had.