An Analysis of Proposed Changes to Incentivize Facilities Capital Investment through Cost Accounting Standard 409.
Abstract
Amending/Repealing Cost Accounting Standard (CAS) 409 has been set forth by the DOD Acquisition Improvement Program (Initiative 5a) as a means to encourage investment to enhance productivity within the defense industry. Through interviews and published material the authors discovered positions of DoD, defense industry, defense industry associations and General Accounting Office. The predominant positions are: I) full use a liberal interpretation of CAS 409; IIa) revise CAS 409 to eliminate the historical life requirement and return to the old ASPR 15-205.9 rule; IIb) delete CAS 409 and return to old ASPR 15-205.9; and III) revise CAS 409 to incorporate the ERTA lives. These positions were discussed with support and criticisms provided, a cash flow evaluation was performed and finally each of four predominant positions were analyzed as to; (1) Does the position meet the objectives of the Cost Accounting Standards?; (2) Does the position result in increased cash flow?; and (3) Will the position achieve the goal to enhance investment? As a result of the analysis the authors conclude that it should be adopted.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1982
- Accession Number
- ADA124402
Entities
People
- Dale R. Bauer
- Richard A. Augsburger
Organizations
- Air Force Institute of Technology