CAS

Cost Accounting Standards are a set of rules issued by the Cost Accounting Standards Board governing how contractors measure, assign, and allocate costs on federal contracts. CAS ensures consistency and transparency in contractor cost accounting practices.

CAS applies to negotiated contracts over certain dollar thresholds, with full or modified coverage depending on contract value and contractor status. Compliance requires consistent treatment of costs across contracts, disclosure of accounting practices, and agreement to adjust contract prices for cost accounting changes. CAS-covered contractors need robust accounting systems and cost accounting policies.