48 CFR 9904 PDF

Title 48 – FEDERAL ACQUISITION REGULATIONS SYSTEM Chapter 99 – COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL Subchapter B. 48 CFR, Pt TITLE FEDERAL ACQUISITION REGULATIONS SYSTEM AND COST ACCOUNTING STANDARDS PART COST ACCOUNTING. interpretations indicated thereto contained in 48 CFR , in effect on the date of award of this subcontract or, if the Seller has submitted cost or pricing data.

Author: Batilar Najas
Country: Serbia
Language: English (Spanish)
Genre: Technology
Published (Last): 19 November 2008
Pages: 355
PDF File Size: 13.57 Mb
ePub File Size: 10.80 Mb
ISBN: 318-2-27382-786-1
Downloads: 74947
Price: Free* [*Free Regsitration Required]
Uploader: Nikoll

Any surrogate used should be a reasonable measure of the services received and, logically, should vary in proportion to the services received. Any excess of the amount of the liability as determined in accordance with paragraph c of this subsection over the 994 amount of the liability as determined in accordance with the contractor’s previous practice shall be held in suspense and accounted for as described in subparagraph d 3 of this subsection.

The change or failure may increase the cost paid under one or more of the contracts, while decreasing the cost paid under one or more of the contracts.

The entertainment costs ccfr such trips is expressly unallowable because it constitutes entertainment expense, and is separately identified by the contractor. This change is not a change of cost accounting practice, but a correction of numeric cffr. Federal agencies shall prescribe regulations and establish internal procedures by which each will promptly determine on behalf of the Government, when serving as the cognizant Federal agency for a particular contractor location, that a Disclosure Statement has adequately disclosed the practices required to be disclosed by 904 Cost Accounting Standards Board’s rules, regulations and Standards.

In segment, A, the costs of the manufacturing overhead pool have been allocated to final cost objectives using a direct labor hours base; in segment B, the costs of the manufacturing overhead pool have been allocated to final cost objectives using a direct labor dollars base.

This formula is considered to result in appropriate allocations of the residual expenses of home offices. Contractor C’s practice complies with provisions of While individual contract prices, including cost ceilings or target costs, as applicable, may be increased as well as decreased to resolve an estimating noncompliance, the aggregate value of all contracts affected by the estimating noncompliance shall not be increased.

This may be the case, for example, if a segment relies heavily on the home office for certain residual functions normally performed by other segments on their own. Any resulting differences in practices between contracts subject to full coverage and those subject to modified coverage shall not constitute a violation of Any such types of payments or accruals which cannot be identified specifically with individual segments shall be allocated to benefitted segments using an allocation base representative of the factors on which the total payment is based.

  HI 98129 PDF

Of course, the inventory must be available for each year in the sampling time period. Modifying his practice so as to comply with the definition of production unit in A power supply is replaced during the service life of the related press. If an applicable Disclosure Statement has already been submitted, the offeror may satisfy the requirement for submission by providing the information requested in paragraph c of Part I of this provision.

48 CFR Part – COST ACCOUNTING STANDARDS | US Law | LII / Legal Information Institute

The contractor has not changed the method or technique used to determine the estimate. Output is measured in terms of units of end product produced by the supporting function, as for example, number of printed pages for a print shop, number of purchase orders processed by a purchasing department, number of hires by an employment office.

Sick leave entitlement may be accumulated without limit, but an employee is paid for sick leave only during actual illness; the Company does not pay for unused sick leave on lay-off. The following example illustrates the computation of vacation pay costs for Company E in The acquisitions of each prior year should be samples in turn to determine if sample items are currently in service.

The term also includes those joint ventures and subsidiaries domestic and foreign in which the organization has less than a majority of ownership, but over which it exercises control. The Standard requires that, based upon the contractor’s policy, the new power supply be capitalized with appropriate accounting for the replaced unit.


In accordance with Although the facility will last 10 years, the contracting parties may agree in advance to depreciate the facility over 6 years.

Contractor E’s practice complies with provisions of Negotiated contracts awarded to an FFRDC operated by an educational institution are subject to the full or modified CAS coverage prescribed in paragraphs a and b of this subsection.

No final cost objective shall have allocated to it as an indirect cost any cost, if other costs incurred for the same purpose, in like circumstances, have been included as a direct cost of that or any other final cost objective.


If any change in cost accounting practices is made for the purposes of any contract or subcontract subject to CAS requirements, the change must be applied prospectively to this contract and the Disclosure Statement, if required, must be amended accordingly.

This chapter describes policies and procedures for applying the Cost Accounting Standards CAS to 99904 contracts and subcontracts. On October 1, assumed for purposes of this illustration Cost Accounting Standard becomes effective. This PartRules and Procedures, may be amended by the Chairman, after consultation with the Board.

Therefore, segment book income is to be used as a factor in allocating income tax expense from a home office to segments only where this amount is expressly used by the taxing jurisdiction in computing the income tax. Other terms defined elsewhere in this part 99 shall have the meanings ascribed to them in those definitions unless paragraph b of this section requires otherwise.

They shall, however, be developed to represent a full cost accounting period, except as provided in paragraph a of this subsection. Similarly, where a variance related to labor is allocated, the allocation shall be on the basis of the labor cost at standard or labor hours at standard or, where outputs are homogeneous, on the basis of units of output; or.

This situation is virtually identical with that described in Illustration The Chairman may vote on all matters presented for a vote, not merely to resolve tie votes. They shall be used as a basis for estimates of service lives of tangible cf assets acquired thereafter. Disclosure Statement as used herein refers to the statement required to be submitted by contractors as a condition of contracting as set forth in subpart The Company does not recognize a liability for vacation pay at December 31 because an employee must be employed on January 1 to be eligible.

Because the ending liability exceeds the amount in suspense at the beginning ofthere is no reduction of suspense in Accordingly, all machinery and equipment is accounted for as a single group.