Unallowable costs have long been a prime target for the Defense Contract Audit Agency (DCAA) Auditors. Proper identification and segregation of unallowable costs is a key component of an adequate accounting system and failure to properly segregate such costs may result in penalties. Contractors need to segregate unallowable costs and maintain proper documentation in order to withstand audit scrutiny.
Topics Covered
-FAR Cost Principles and Unallowable Costs
-Best Practices to Identify and Segregate Unallowable Costs
-Grey areas and penalties for Unallowable Costs
-DCAA’s interpretation of FAR Part 31
Fundamentals Track
This beginner-level panel will provide an overview of the FAR cost principles and their impact on cost accounting and pricing challenges.