Subscribe:

Ads 468x60px

Cost Accounting Standards Board (CASB)

The  CASB  produced  20  cost  accounting  standards  (of which  one  has  been withdrawn) from its inception until it was terminated in 1980. The CASB was recreated  in 1988 as an  independent board of  the Office of Federal Procurement Policy. The board’s objectives are to:

• Increase the degree of uniformity in cost accounting practices among government contractors in like circumstances;
• Establish consistency in cost accounting practices in like circumstances by each individual contractor over  time; and
• Require contractors  to disclose  their cost accounting practices  in writing.

Although CASB standards do not constitute a comprehensive set of rules, compliance is required for companies bidding on or pricing cost-related contracts for the federal government. An organization important to the practice of management and cost accounting is  the  Institute of Management Accountants, or  the  IMA. The  IMA  is  a  voluntary membership organization of accountants,  finance  specialists, academics, and others.  It  sponsors  two major  certification programs: Certified Management Accountant (CMA) and Certified  in Financial Management (CFM). The  IMA also  issues directives  on  the  practice  of management  and  cost  accounting  called  Statements  on Management Accounting, or SMAs. The SMAs, unlike  the pronouncements of  the CASB,  are  not  legally  binding  standards,  but  they  undergo  a  rigorous  developmental and exposure process that ensures their wide support.
Related Posts Plugin for WordPress, Blogger...