CAS 410 – Allocation of Business Unit General and Administrative (G&A) Expenses to Final Cost Objectives (Part 3 of 3)

*This is Part 3 of a 3-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 related to the G&A expense pool. Part 2 addressed the requirements/techniques for application related to the G&A allocation base. This Part 3 addresses special allocations of G&A expenses.  Background: To provide criteria for the allocation of business unit general and administrative (G&A) expenses to business unit final cost objectives.  The standard also provides criteria for allocating home office expenses received by the business unit segment to business unit final cost objectives (CAS 410-20).   G&A Special Allocations   CAS 410-40(b)(2) states that the allocation of the … Continue reading