Cost Accounting

n the early years of the 20th century, the US national 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 are apportioned by contractors to their contracts with the government. In 1970 the relation created the constitute business relationship Standards Board (CASB) whose function was to develop a discipline of uniform and consistent standards. The board came up with 19 standards that impose accounting requirements that were unique and signifi lavatoryt on companies awarded contracts by the government. The radical 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 price is based on the contractors cost of performance, the government therefore accept the need to protect itself from mischarges by defining the costs that can be recovered from contracts and also put in go into rules for the allocation of costs that are indirect to the contracts. The commonplace Accounting Office was then prone the mandate to explore the initiative of putting in place new guidelines.



GAO submitted a subject 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 Comptroller General who was given the power to appoint four other members. CASB was given the authority to promulgate standards that are designed to realize unity and consistency in practices of cost accounting that are use by the federal contractors on national defense 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 get a intact essay, order it on our website: Ordercustompaper.com



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