CAS 420 – Accounting for Independent Research & Development (IR&D) Costs and Bid & Proposal (B&P) Costs (Part 1 of 3)

*This is Part 1 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. This Part 1 addresses the overall purpose of the standard, as well as the requirements/techniques for the accumulation of IR&D and B&P costs. Part 2 will address the allocation of IR&D and B&P costs, except for special allocations. Part 3 will address special allocations of IR&D and B&P costs.   Background: As stated at CAS 420-20, the purpose of the standard is to provide criteria for the accumulation of IR&D and B&P costs, and for the allocation of such costs to cost objectives based on the beneficial or causal relationship between such costs and cost objectives   What it covers: The … Continue reading

CAS 418 – Allocation of Direct and Indirect Costs (Part 6 of 6)

*This is Part 6 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 addressed the requirements/techniques for application related to indirect cost pools. Part 3 addressed the requirements/techniques for application related to allocation bases (with the exception of the allocation of indirect cost pools that benefit each other, which is addressed in Part 4 of this blog). Part 4 addressed the requirements/techniques for application related to allocation bases for the allocation of indirect cost pools that benefit each other. Part 5 addressed special allocations. This Part 6 addresses pre-determined … Continue reading