FAR Cost Accounting Standards (CAS) 1

Question 1

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

Accepted Answer

Cost Accounting Standards Board (CASB)

Answer

The Cost Accounting Standards Board (CASB) is the federal agency that promulgates CAS to achieve uniformity and consistency in cost accounting practices used by defense contractors.

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

Modified CAS coverage is triggered when a contractor receives a single negotiated CAS-covered contract of $2 million or more (48 CFR 9903.201-1).

Question 3

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

Accepted Answer

CAS 401

Answer

CAS 401 requires contractors to use consistent accounting practices in estimating, accumulating, and reporting costs to ensure comparability and integrity of cost data.

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

The Disclosure Statement (CASB DS-1) requires contractors to describe their cost accounting practices so the government can verify consistency and compliance.

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

For a voluntary accounting change, the contractor must submit a revised Disclosure Statement and receive written approval from the Cognizant Federal Agency Official (CFAO) before implementing the change.

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR Cost Accounting Standards (CAS) 1