As the weapon systems of the 21st century are becoming more and more performance /technoloriven, it is only becoming more expensive to obtain the weapon systems. Therefore, it is absolutely vital for every nation to find a way to reduce cost objectives. As CAIV is a strategy that entails setting aggressive, yet realistic cost objectives when defining operational requirements and acquiring defense systems and managing achievement of these objectives, we believe that it is essential for us to find out what it is and how we can adopt it so that we can provide ourselves with highly capable systems that are affordable. Therefore, In this paper we will give a brief overview of CAIV that is one of the main acquisition strategies adopted by DoD of U.S. including some case studies of CAIV. Furthermore, the paper will analyze stated cost objectives in our country and suggest realistic opportunities for cost reduction.