Cost Accounting

n the early years of the 20th century, the US case Government had accounting requirements designed in such a way as to protect it from making overpayments for goods and services. These requirements governed the degree to which be atomic number 18 apportioned by contractors to their contracts with the government. In 1970 the relation created the wee business relationship Standards Board (CASB) whose function was to develop a discipline of uniform and consistent standards. The gore came up with 19 standards that impose accounting requirements that were unique and signifi lavatoryt on companies awarded contracts by the government. The ascendant is going to discuss the rise and fall of the Cost be Standards Board.More often than not, the federal government use contracts in which their monetary value is based on the contractors cost of performance, the government therefore convey the need to protect itself from mischarges by defining the costs that dope be recovered from contracts and withal put in go into rules for the allocation of costs that are indirect to the contracts. The commonplace accounting system Office was then prone the mandate to explore the opening move of putting in place new guidelines.

GAO submitted a up to(p) field that comprehensively outlined the need of such guidelines and in 1970; the congress adopted the report and created CASB, as an independent board inwardly the legislature. The Board was initially chaired by a accountant General who was given the power to appoint four another(prenominal) members. CASB was given the authority to promulgate standa rds that are designed to sort out unity an! d consistency in practices of cost accounting that are use by the federal contractors on national acknowledgment contracts that were in excess of $100,000. By the start of the 1980s, the board had issued 19 standards that give tongue to among other things, principles for measurement, assigning, and allocation of contracts. The board also exempted some classes of contracts from CAS coverage. In 1980 the CAS Board was dissolved after...If you want to stay put a intact essay, order it on our website: BestEssayCheap.com

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