REMINDER: Consistency in Allocating Costs
Published December 21, 2022
Charging similar costs as indirect on one contract but direct on another contract is a Cost Accounting Standards (CAS) noncompliance.
A CAS noncompliance could result in downward contract price adjustments, cash withholds and other detrimental financial impacts to the company. For this reason, it is important to be consistent in charging labor and material costs.
Government Finance Relations (O74) can provide assistance in determining the correct way to charge.