Definition
CAS Cost Accounting Standards are government-mandated rules for how contractors must account for costs on federal contracts.
Definition
Cost Accounting Standards (CAS) are a set of 19 standards and rules promulgated by the Cost Accounting Standards Board (CASB) that govern how contractors must measure, assign, and allocate costs to contracts with the federal government. CAS coverage is triggered when a contractor receives a CAS-covered contract, typically those exceeding certain dollar thresholds. Full CAS coverage requires compliance with all 19 standards, while modified CAS coverage requires compliance with only four standards (CAS 401, 402, 405, and 406). CAS requirements include maintaining consistent cost accounting practices, disclosing cost accounting practices in a Disclosure Statement, and following specific rules for allocating direct and indirect costs. Non-compliance can result in cost disallowances, contract adjustments, and potential False Claims Act liability.
Also Known As
- CAS Compliance
- Cost Accounting Standards Board Standards
Examples
Common Mistakes to Avoid
- ✕Not updating Disclosure Statements when accounting practices change
- ✕Inconsistent treatment of similar costs across contracts
- ✕Failing to recognize when CAS coverage thresholds are triggered
Who Should Know This Term
Government contract accountants, CFOs, financial controllers, DCAA auditors
Official Source
48 CFR Chapter 99
