An Evaluation of the Application of the Cost Accounting Standards: A case Study

Abstract

The purpose of this research project was to examine one company's disagreements with Government contract reviewers over the application of Cost Accounting Standards (CAS). Three specific cases of non-compliance, involving CAS 401, 402, 405 and 418, were examined in detail. These cases were selected because of the relative significance of the dollar amounts involved, the extreme variances in interpreting the standards and methods of implementing the standards, and the inordinate length of time it took to resolve the issues. After careful analysis of the three cases, specific conclusions and recommendations are presented. Areas covered include: the Administrative Contracting Officer's (ACO) knowledge of CAS, the ability of smaller companies to adhere to CAS requirements, the Government's policy on cost impact and recovery, the rules regarding the implementation of a new standard, the difficulty in determining the exact cost impact of non-compliance, and problems inherent in the process of resolving non-compliance cases.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1991
Accession Number
ADA245271

Entities

People

  • Bruce N. Lemler

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Human Systems
  • Space

DTIC Thesaurus Topics

  • Accounting
  • Business Administration
  • Case Studies
  • Classification
  • Computer Programs
  • Contract Administration
  • Contracts
  • Cost Analysis
  • Department Of Defense
  • Government Procurement
  • Governments
  • Law
  • Management Personnel
  • Money
  • Organizational Structure
  • Test And Evaluation
  • United States

Readers

  • Government Contracting/Procurement.
  • Regression Analysis.
  • Systems Analysis and Design