FAR Cost Accounting Standards (CAS)

Question 1

Which federal agency is responsible for promulgating Cost Accounting Standards (CAS)?

Accepted Answer

Cost Accounting Standards Board (CASB)

Answer

Department of Defense (DoD)

Answer

General Accountability Office (GAO)

Answer

Office of Management and Budget (OMB)

Question 2

Under what condition does a contractor become subject to MODIFIED CAS coverage?

Accepted Answer

Receipt of a single CAS-covered contract of $2 million or more

Answer

Receipt of a single CAS-covered contract of $500,000 or more

Answer

Receipt of a single CAS-covered contract of $50 million or more

Answer

Receipt of total CAS-covered contracts exceeding $25 million in the prior year

Question 3

Which CAS standard addresses 'Consistency in Estimating, Accumulating, and Reporting Costs'?

Accepted Answer

CAS 401

Answer

CAS 402

Answer

CAS 403

Answer

CAS 404

Question 4

What is the primary purpose of the Disclosure Statement (Form CASB DS-1)?

Accepted Answer

To describe the contractor's cost accounting policies and practices

Answer

To report actual costs incurred on government contracts

Answer

To estimate future contract costs for negotiation

Answer

To document the contractor's historical profit margins

Question 5

Before making a voluntary change in an established cost accounting practice, what must a contractor do?

Accepted Answer

Submit a revised Disclosure Statement and obtain CFAO approval

Answer

Notify the contracting officer within 30 days after implementing the change

Answer

Report the change directly to the CASB within 60 days

Answer

Obtain DCAA audit clearance before proceeding

Question 6

Which type of CAS coverage requires compliance with ALL applicable Cost Accounting Standards?

Accepted Answer

Full CAS coverage

Answer

Modified CAS coverage

Answer

Limited CAS coverage

Answer

Standard CAS coverage

Question 7

CAS 402 specifically requires which cost accounting consistency principle?

Accepted Answer

Consistency in allocating costs incurred for the same purpose

Answer

Consistency in estimating versus accumulating costs

Answer

Consistency in home office expense allocation methods

Answer

Consistency in capitalization thresholds across fiscal years