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.
|Published (Last):||11 January 2008|
|PDF File Size:||19.30 Mb|
|ePub File Size:||17.71 Mb|
|Price:||Free* [*Free Regsitration Required]|
If an expense, such as taxes, insurance or employee leave, is identified with a fixed, recurring, annual period which is different from the contractor’s cost accounting period, the Standard permits continued use of that different period. These expenses represent the cost ccfr the management and administration of the business unit as a whole.
48 CFR Part – COST ACCOUNTING STANDARDS | US Law | LII / Legal Information Institute
However, costs incurred for repairs and maintenace to a tangible capital asset which either restore the asset to, or maintain it at, its normal or expected service life or production capacity shall be treated as costs of the current period.
Such allocations shall minimize to the extent practical the amount of expenses which may be categorized as residual those of managing the organization as a whole.
The change in his cost accounting period is a change in accounting practices; adjustments of the contract prices may thereafter be required in accordance with paragraph a 4 ii or iii of the contract clause 488 A change to such practices may be proposed, however, by either the Government or the Contractor, and the Contractor agrees to negotiate with the Contracting Officer the terms and conditions under which a change may be made. Where such gain or loss is not material, the amount may be included in an appropriate indirect cost pool.
It excludes incidental ccr, dividends, royalty, and rental income, and proceeds from the ccr of assets used in the business. The purpose of this Standard is to improve, and provide uniformity in, the measurement of costs of vacation, sick leave, holiday, and other compensated personal absence for a cost accounting period, and thereby increase the probability that the measured costs are allocated to the proper cost objectives.
48 CFR Part 9904 – COST ACCOUNTING STANDARDS
Maintenance is the regularly 448 activity of keeping assets in normal or expected operating condition while repair is the activity fcr putting them back into such condition.
Of course, the more 84 the data in the records which are available, the more confidence there can be in determinations of asset service lives.
Despite the fact that Company C might be able to estimate the amount which will be paid for sick leave in a future cost accounting period with a high degree of accuracy, it has no liability for payment for unused sick leave entitlement in the event of lay-off. First, the taxes of any particular jurisdiction are to be allocated only to those segments that do business in the taxing jurisdiction. The factors which can be used to modify past experience include:.
A vice president of personnel who establishes personnel policy and overall guidance, and a personnel department which handles hirings, testing, evaluations, etc. An analysis of these retirements may be made by selecting the larger dollar items for each category of assets for which lives are to be determined for example, at least 75 percent of the acquisition values retired each year.
This PartRules and Procedures, may be amended by the Chairman, after consultation with the Board. Labor-rate variances and labor-time variances may be combined into one labor-cost 9940 account. Only if all salaries were directly allocated to a single final cost objective, as might be the case with 99044 assigned to an overseas base for the performance of a single contract, would this practice be in accord with that requirement.
As used here, function is an activity or group of activities that is identifiable in scope and has a purpose or end to be accomplished. 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 Its experience with similar machines is that the average replacement period is 14 years. Central payments or accruals which are made by a home office on behalf of its segments shall be allocated directly to segments to the extent that all such payments or accruals of a given type or class can be identified specifically with individual segments.
Usage of the milling machine can be measured readily based on hours of operation. The average replacement life for machinery and equipment in Company Z is 10 years. 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. 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.
The item is then traced to prior year inventories to determine the year in which acquired.
The contractor allocated the cost of purchased or requisitioned hardware directly to projects. The appropriate method of depreciation should be selected as follows:. Examples of homogeneous groupings of material are:. However, costs estimated for proposal purposes shall be presented in such a manner and in such detail that any significant cost can be compared with the actual cost accumulated and reported therefor.
Other terms defined elsewhere in this chapter 99 shall have the meanings ascribed to them in those definitions unless paragraph b of this subsection requires otherwise. This waiver authority is not available unless the cognizant Federal agency and the educational institution have established a disclosure statement due date pursuant to a written agreement executed prior to January 1,and award is made prior to the established disclosure statement due date.
All vacation must be taken between July 1 and September Currently performing, as used in this part, means that a contractor has been awarded a contract, but has not yet received notification of final acceptance of all supplies, services, and data deliverable under the contract including options.
Quantity and quality of expected output, and the timing thereof; costs of repair and maintenance, and the timing thereof; standby or incidental use and the timing thereof; and technical or economic obsolescence of the asset or group of assetsor of the product or service it is involved in producing.
Unallowable costs involved in the determination of rates used for standard costs, or for the indirect-cost bidding or billing, need be identified only at the time rates are proposed, established, revised or adjusted. See oras applicable.
The circumstances are different because the costs of preparing proposals specifically required by the provisions of an existing contract relate only to that contract while other proposal costs relate to all work of the contractor. This year a technological change leads to a prediction of a useful life of 7 years for the assets acquired this year for the class of assets.
Parts and apply to educational institutions except as otherwise provided in this paragraph c and at They shall be allocated to the segment for which the expenses were incurred on the basis of the beneficial or causal relationship between the expenses incurred and all benefiting or causing segments.
The determination of the amount paid or a change in the amount paid for a unit of goods and services is not a cost accounting practice. Central payments or accruals are those which but for the existence of a number of segments would be accrued or paid by the individual segments.