Summary CLC056 Analyzing Contract Cost s Lesson 3 - Cost Accounting Standards and Allowability

CLC056 Analyzing Contract Cost s
Lesson 3 - Cost Accounting Standards and Allowability RESOURCES 1 PRINT 1 HELP


Introduction

Welcome to Cost Accounting Standards and
Allowability!

You might be wondering, "How will the in formation
in this lesson help me in my j ob as a con trac t
specialist?"

As a contract specialist , you will have to abide by
standards and laws in order to do your job. This PL-e.bLLc Law 1.00- 67!) (-+1.
information includes the Cost Accounting
Standards (CAS) , 19 rules promulgated by the t-t.s.c. -+22) YtqL-C.LYes
Federal governmen t to promote uniformity and ctrtaL"" COII\,tYQCtOYS QII\,C(
consistency in contractor accounting systems.
SL-e.bCOII\,tYQCtOYS to C01%JlL!::j
You will also need to determine which costs are wLt~ CAS """~ to ~LscLose
allowable, allocable, and reasonable according to
the cost principles outlined in the Federal L"" WYLtL'"-0 &I""~ foLLow
Acquisition Regulations ( FAR) . COII\,SLstt""tL!::j t~ttY cost
Q CCOL-C.II\,tL'"-0 "JlY&I ctLcts.




..... I Pa gelof 37 I .....
Back Next

,Long Description

Monitor displaying a yellow sticky note on a cork board that says: Public Law 100-679 (41 U.S.C. 422)
requires certain contractors and subcontractors to comply with CAS and to disclose in writing and follow
consistently their cost accounting practices.

,CLC056 Analyzing Contract Cost s
Lesson 3 - Cost Accounting Standards and Allowability RESOURCES 1 PRINT 1 HELP


Obj ectives

At the end of this lesson, you will be able to:

• Identify the exemptions to the Cos t
Accounting Standards (CAS) coverage
• Identify the purpose of a Disclosure
Statement

• Determine the level of CAS coverage that
applies

• Determine if a cost is allowable
• Determine if a cost is allocable
• Determine if a cost is reasonable

Sound good? All right, let's get started !




..... I Page2of 37 I .....
Back Next

, Overview - Cost Accounting Standards (CAS)

Cost Accounting Standards are used for
estimating, accumu lating, and reporting costs
associated with pricing, administration, and
settlement of negotiated national defense prime
contracts and subcontracts in excess of
$750,000.

There are three types of CAS coverage for
noncommercial contracts and subcontracts :

• Full ( all 19 standards)
• Modified { CAS 401, 402, 405, and 406)
• Foreign Concerns { CAS 401 and 402 only)




~ Page 3 of 3 7 I~