[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: 48CFR9904.401-50]



[Page 354-355]

 

            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. 9904.401-50  Techniques for application.



    (a) The standard allows grouping of homogeneous costs in order to 

cover those cases where it is not practicable



[[Page 355]]



to estimate contract costs by individual cost element or function. 

However, costs estimated for proposal purposes shall be presented in 

such a manner and in such detail that any significant cost can be 

compared with the actual cost accumulated and reported therefor. In any 

event the cost accounting practices used in estimating costs in pricing 

a proposal and in accumulating and reporting costs on the resulting 

contract shall be consistent with respect to:

    (1) The classification of elements or functions of cost as direct or 

indirect;

    (2) The indirect cost pools to which each element or function of 

cost is charged or proposed to be charged; and

    (3) The methods of allocating indirect costs to the contract.

    (b) Adherence to the requirement of 9904.401-40(a) of this standard 

shall be determined as of the date of award of the contract, unless the 

contractor has submitted cost or pricing data pursuant to 10 U.S.C. 

2306a or 41 U.S.C. 254(d) (Pub. L. 87-653), in which case adherence to 

the requirement of 9904.401-40(a) shall be determined as of the date of 

final agreement on price, as shown on the signed certificate of current 

cost or pricing data. Notwithstanding 9904.401-40(b), changes in 

established cost accounting practices during contract performance may be 

made in accordance with part 99.