Government contractors may encounter difficulties dealing with Cost Accounting Standards (CAS). These standards may apply to prime contractors and subcontractors or specific contracts to estimate, record, and report expenses, as well as settle disputes related to procurements with the federal government, unless exempted.
The CAS offer flexibility in selecting from a range of compliant cost accounting practices, but navigating these options requires deep experience in government contract cost accounting, pricing regulations, and compliance requirements. Our professionals can help you strategically assess your options.
A cost accounting practice refers to an accounting method or technique disclosed or established for measuring costs, assigning costs to accounting periods, or allocating costs to cost objectives. The Cost Accounting Standards Board (CASB) is responsible for ensuring consistency and uniformity in contractor cost accounting practices, as well as proper allocation of costs for government grants and contracts, by issuing standards.
The CASB has promulgated 19 standards that outline the purpose, definitions, fundamental requirements, techniques for application, and illustrations of each standard. Some standards also specify the interpretation, exemption, and effective date, as applicable.