Lesson Summary

That concludes Lesson 5: Cost Allocation. You are now able to:

• Determine if the contractor has allocated home office expenses to segments in accordance with the requirements of Cost Accounting Standard (CAS) 403.
• Determine if the contractor has allocated business unit general and administrative (G&A) expenses to final cost objectives in accordance with the requirements of CAS 410.
• Determine if the contractor has accounted for Independent Research and Development and Bid and Proposal costs (IR&D/B&P) in accordance with the requirements of CAS 420.
• Determine if the contractor has allocated direct and indirect costs in accordance with the requirements of CAS 418.