[Code of Federal Regulations]

[Title 48, Volume 7]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR9904.401-20]



[Page 354]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

     CHAPTER 99--COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL 

           PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

 

PART 9904_COST ACCOUNTING STANDARDS--Table of Contents

 

Sec. 9904.401-20  Purpose.



    The purpose of this Cost Accounting Standard is to ensure that each 

contractor's practices used in estimating costs for a proposal are 

consistent with cost accounting practices used by him in accumulating 

and reporting costs. Consistency in the application of cost accounting 

practices is necessary to enhance the likelihood that comparable 

transactions are treated alike. With respect to individual contracts, 

the consistent application of cost accounting practices will facilitate 

the preparation of reliable cost estimates used in pricing a proposal 

and their comparison with the costs of performance of the resulting 

contract. Such comparisons provide one important basis for financial 

control over costs during contract performance and aid in establishing 

accountability for cost in the manner agreed to by both parties at the 

time of contracting. The comparisons also provide an improved basis for 

evaluating estimating capabilities.