- The Department of Defense (DoD) Defense Finance and Accounting Service (DFAS) has developed a Decision-Making Model (CRMC) that is designed to help managers and leaders make better business decisions.
- The model organizes the decision process into six steps that include: (1) define the problem, (2) gather and compile information, (3) select the best solution, (4) implement the decision, (5) monitor and control the decision, and (6) record the decision.
- This model is similar to the process followed by professional investors.
- Professional investors first identify the underlying business problem, then evaluate different possible solutions.
- Once one or more options are selected, the investors begin their research and then implement them.
Decision-making is at the heart of almost any business endeavor. The decision-making process begins with the identification of the problem, followed by the evaluation of different possible solutions. Once one or more options are selected, the project begins.
The Department of Defense (DoD) Defense Finance and Accounting Service (DFAS) has developed a Decision-Making Model (CRMC) that is designed to help managers and leaders make better business decisions.
Understanding the DFAS CRSC Calculator
The DFAS CRSC Calculator is a web-based calculator that the Department of Defense’s (DoD) Defense Finance and Accounting Services (DFAS) designed to assist with the Cost of Living Allowance (COLA) process.
The DFAS CRSC Calculator’s inputs include:
Basic Allowance for Housing (BAH) rate
Basic Allowance for Subsistence (BAS) rate
Basic Allowance for Transportation (BATT) rate
Locality Pay Adjustment (LPA)
Locality Pay Differential (LPD)
The DFAS CRSC Calculator’s outputs include:
COLA rate
COLA amount.
Calculating Military Cost and Revenue Sharing
The Department of Defense (DOD) Cost Sharing Reduction (CSR) Calculator is designed to estimate the amount of CSR that is available to military reservists. This is calculated based on the aggregate salary of reservists, spouses, and dependents.
To calculate CSR, the DOD uses the following factors:
Monthly household income
Number of qualifying dependents
Service member’s rank and tenure
The CRSC Calculator is provided as a helpful tool to estimate CSR, but it may not provide an accurate estimate in all cases. For example, military service members with dependents experiencing extreme financial hardship may be granted CSR benefits.
Military Revenue
This calculator links into the Defense Finance and Accounting Service (DFAS) database. The calculator provides military personnel with an idea of their projected military pay.
Personnel Record
This calculator links into the DFAS database. The calculator provides military personnel with an idea of their projected military pay.
Military Pay Estimator
This calculator links into the DFAS database. The calculator helps military personnel calculate their potential military pay.
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Special Considerations
The Defense Finance and Accounting Service (DFAS) is a component agency of the U.S. Department of Defense (DOD). DFAS Accounting Guide 004 provides policy guidance for DoD and non-DOD agencies on the accounting treatment of major weapon systems.
One of the most important tools used by DFAS to project future expenses is the cost realism tool. The Defense Acquisition University (DAU) has an online cost realism calculator that allows users to project costs based on historical data. Each military branch has specific data that must be entered by the user. While DFAS has updated this tool, there are three (3) major concerns