FAR Cost Accounting Standards (CAS) 3

Question 1

Which contract type is EXEMPT from CAS coverage based on the nature of the award process?

Accepted Answer

Contracts set aside for small businesses

Answer

CAS exemptions include contracts with small businesses, contracts at or below the simplified acquisition threshold, and contracts with foreign governments, among others.

Question 2

The 'cost impact' of a CAS noncompliance or accounting change is best described as:

Accepted Answer

The net effect on all affected CAS-covered contracts due to the change or noncompliance

Answer

Cost impact represents the aggregate effect across all affected CAS-covered contracts of a contractor's change in practice or noncompliance, which may increase or decrease government costs.

Question 3

When a contractor fails to comply with an applicable CAS requirement, what is the government's primary remedy?

Accepted Answer

Recovery of increased costs resulting from the noncompliance, plus interest

Answer

The government's primary remedy for CAS noncompliance is recovery of the increased costs it incurred as a result of the noncompliance, plus applicable interest charges.

Question 4

A contractor must file a Disclosure Statement when net CAS-covered award value in the most recent cost accounting period exceeds:

Accepted Answer

$50 million

Answer

A contractor must file a Disclosure Statement when it receives net CAS-covered contract awards totaling $50 million or more in its most recent cost accounting period, matching the full CAS coverage threshold.

Question 5

Under CAS 410, what costs must be accumulated in the General and Administrative (G&A) expense pool?

Accepted Answer

Management, financial, and administrative costs that benefit the entire business unit

Answer

CAS 410 requires that costs of management, financial, and other general and administrative functions benefiting the entire business unit be accumulated in the G&A pool and allocated to final cost objectives.

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR Cost Accounting Standards (CAS) 3