Abstract: COSt as independent variable (CAIV) is a defense acquisition methodology of DOD, U.S. This methodology is an important tool that integrates the operaional effectiveness, costs and perfor?mance parameters in an effort to make a tradeoff and establish the cost goals of life-cycle phases. In a systemic demonstration of a new weapon system, the key technologies of CAIV include modeling of system cost and effectiveness, tradeoff study, and establishment of cost goals, etc. The above men?tioned key technologies were studied and the future research was forecasted.

Key words: methodology for systematic engineering , cost as independent variable , demonstration , ef?fectiveness , cost , performance , tradeoff study