Cost Accounting Standards
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Cost Accounting Standards (popularly known as CAS) are a set of 19 standards and rules promulgated by the United States Government for use in determining costs on negotiated procurements. CAS differs from the Federal Acquisition Regulation (FAR) in that FAR applies to substantially all contractors, whereas CAS applies primarily to the larger ones.
In 1970, Congress established the original Cost Accounting Standards Board (CASB) to promulgate cost accounting standards designed to achieve uniformity and consistency in the cost accounting principles followed by defense contractors and subcontractors in excess of $100,000, and to establish regulations to require defense contractors and subcontractors, as a condition of contracting, to disclose in writing their cost accounting practices, to follow the disclosed practices consistently and to comply with promulgated cost accounting standards.
After adopting 19 standards, the original CASB was dissolved on September 30, 1980; the standards, however, remained active and the CASB was revived in 1988 within the Office of Federal Procurement Policy (OFPP). The current CASB consists of five members: the OFPP Administrator (who serves as Chairman) and one member from the United States Department of Defense (this position is held by the Director of the Defense Contract Audit Agency), the General Services Administration, industry, and the private sector.[1]
The Standards
The original CASB adopted 19 standards, numbered 401 through 420 (419 was never assigned). The new CASB readopted the original 19 standards with only minor modifications, and has yet to adopt any new standards.
| Standard | Title |
|---|---|
| 401 | Consistency in Estimating, Accumulating and Reporting Cost |
| 402 | Consistency in Allocating Costs Incurred for the Same Purpose |
| 403 | Allocation of Home Office Expenses to Segments |
| 404 | Capitalization of Tangible Assets |
| 405 | Accounting for Unallowable Costs |
| 406 | Cost Accounting Period |
| 407 | Use of Standard Costs for Direct Material and Direct Labor |
| 408 | Accounting for Costs of Compensated Personal Absence |
| 409 | Depreciation of Tangible Capital Assets |
| 410 | Allocation of Business Unit General and Administrative Expenses to Final Cost Objectives |
| 411 | Accounting for Acquisition Costs of Material |
| 412 | Composition and Measurement of Pension Costs |
| 413 | Adjustment and Allocation of Pension Cost |
| 414 | Cost of Money as an Element of the Cost of Facilities Capital |
| 415 | Accounting for the Cost of Deferred Compensation |
| 416 | Accounting for Insurance Cost |
| 417 | Cost of Money as an Element of the Cost of Capital Assets Under Construction |
| 418 | Allocation of Direct and Indirect Costs |
| 419 | unused |
| 420 | Accounting for Independent Research and Development Costs and Bid and Proposal Costs (IR&D and B&P) |