Cas Home Office Allocation
A home office is one that is responsible for directing or managing two or more but not necessarily all segments of an organization cas 403 30 a 2.
Cas home office allocation. Such expenses shall be allocated directly to segments to the maximum extent practical. The allocation of home office expenses to segments of the organization cas 403 20 a. For purposes of contracts subject to this standard the contracting corporation may only accept allocations from the other corporation to the extent that such allocations meet the requirements set forth in this standard for allocation of home office expenses to segments. The home office performs the materials inspection function for each of these segments.
This is covered by cas 410 and 418. Table of contents. 8 000 cost accounting standards. A the purpose of this cost accounting standard is to establish criteria for allocation of the expenses of a home office to the segments of the organization based on the beneficial or causal relationship between such expenses and the receiving segments.
The purpose of cas 403 is to establish criteria for allocating home office expenses to the segments of the organization on the basis of a beneficial or causal relationship. Cas 403 allocation of home office expenses to segments. 1 home office expenses shall be allocated on the basis of the beneficial or causal relationship between supporting and receiving activities. What it does not cover.
In accordance with cas 403 40 a 1 home office costs must be allocated on the basis of the beneficial or causal relationship between supporting and receiving activities. The accounting treatment of the home office expenses after they have been allocated to the segments i e how segments allocate the home office expenses to contracts. Allocation of home office expenses to segments 8 403 1 general 8 403 2 guidance. The office of federal procurement policy ofpp cost accounting standards cas board is providing public notification of the decision to discontinue the rulemaking in the review of the cas 403 thresholds at 48 cfr 9904 403 40 c 2 that require use of the three factor formula described at 48 cfr 9904 403 50 c 1 for allocating residual home office expenses.
Cas 403 allocation of home office expenses to segments. A contractor has three segments. Cost accounting standards.