Difference between revisions of "CAS 403 - 3 Factor Formula Determination"

Revision as of 14:07, 26 September 2014

(2) Residual expenses shall be allocated pursuant to 9904.403-50(c)(1) if the total amount of such expenses for the contractor's previous fiscal year (excluding any unallowable costs and before eliminating any amounts to be allocated in accordance with paragraph (c)(3) of this subsection) exceeds the amount obtained by applying the following percentage(s) to the aggregate operating revenue of all segments for such previous year:

• 3.35 percent of the first $100 million;

• 0.95 percent of the next $200 million;

• 0.30 percent of the next $2.7 billion;

• 0.20 percent of all amounts over $3 billion.

The determination required by this paragraph for the 1st year the contractor is subject to this Standard shall be based on the pro forma application of this Standard to the home office expenses and aggregate operating revenue for the contractor's previous fiscal year^[1].

Related Pages

CAS 403 - Allocation of Home Office Expenses to Segments

References

1. ↑ This page is a transclusion page onto CAS 403 - Allocation of Home Office Expenses to Segments