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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 99 - Cost Accounting Standards Board, Office of Federal Procurement Policy, Office of Management and Budget |
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SubChapter B - Procurement Practices and Cost Accounting Standards |
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Part 9904 - Cost Accounting Standards |
§ 9904.407-20 - Purpose.
Latest version.
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9904.407-20 Purpose.
(a) The purpose of this Cost Accounting Standard is to provide criteria under which standard costs may be used for estimating, accumulating, and reporting costs of direct material and direct labor; and to provide criteria relating to the establishment of standards, accumulation of standard costs, and accumulation and disposition of variances from standard costs. Consistent application of these criteria where standard costs are in use will improve cost measurement and cost assignment.
(b) This Cost Accounting Standard is not intended to cover the use of pre-established measures solely for estimating.