Shipyard aerials

Reminder: Accounting for Unallowable Costs

Published November 15, 2023

Cost Accounting Standard (CAS) 405 requires that expressly unallowable costs be identified and excluded from any billing, claim or proposal applicable to a government contract. For this reason, it is important to understanding what types of costs are unallowable.

Corporate Topical Manual F200 defines the criteria to be followed for identifying and segregating allowable and unallowable costs. For questions, contact the Government Financial Relations Department (O74).