Difference between revisions of "CAS 402 - Consistency in Allocating Costs Incurred for the Same Purpose"
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| + | == Purpose == | ||
| + | * Requires that each type of cost be allocated only once and on only one basis to any contract or other cost objective. Criteria for determining the allocation of costs to a product, contract, or other cost objective should be the same for all similar objectives. The standard helps prevent: | ||
| + | * Overcharging | ||
| + | *Double-counting | ||
| + | |||
| + | The purpose of this Cost Principle is to prevent double recovery of contract cost. If a cost is charged direct (that is normally charged indirect), the same indirect rate cannot be used to burden the direct cost, and the direct costs (allocation base) need to be removed from the indirect allocation base. | ||
| + | |||
| + | == Requirements == | ||
| + | * '''No final cost objective shall have any cost allocated as an indirect 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, and vice versa'''. | ||
| + | * Equally applicable to estimates of costs to be incurred as used in contract proposals. | ||
| + | |||
| + | == Applicability == | ||
| + | Applies under modified and full coverage. 48 CFR 9904.402 | ||
| + | |||
| + | |||
[[Category: CAS 402 - Consistency in Allocating Costs Incurred for the Same Purpose]] | [[Category: CAS 402 - Consistency in Allocating Costs Incurred for the Same Purpose]] | ||
Revision as of 20:37, 14 September 2013
Purpose
- Requires that each type of cost be allocated only once and on only one basis to any contract or other cost objective. Criteria for determining the allocation of costs to a product, contract, or other cost objective should be the same for all similar objectives. The standard helps prevent:
- Overcharging
- Double-counting
The purpose of this Cost Principle is to prevent double recovery of contract cost. If a cost is charged direct (that is normally charged indirect), the same indirect rate cannot be used to burden the direct cost, and the direct costs (allocation base) need to be removed from the indirect allocation base.
Requirements
- No final cost objective shall have any cost allocated as an indirect 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, and vice versa.
- Equally applicable to estimates of costs to be incurred as used in contract proposals.
Applicability
Applies under modified and full coverage. 48 CFR 9904.402
