TITLE 48 - FEDERAL ACQUISITION REGULATIONS SYSTEM

CHAPTER 99 - COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

SUBCHAPTER B - PROCUREMENT PRACTICES AND COST ACCOUNTING STANDARDS

PART 9904 - COST ACCOUNTING STANDARDS

9904.420 - 40 - Fundamental requirement.

  (a) The basic unit for the identification and accumulation of Independent Research and Development (IR&D) and Bid and Proposal (B&P) costs shall be the individual IR&D or B&P project.

  (b) The IR&D and B&P project costs shall consist of all allocable costs, except business unit general and administrative expenses.

  (c) The IR&D and B&P cost pools consist of all IR&D and B&P project costs and other allocable costs, except business unit general and administrative expenses.

  (d) The IR&D and B&P cost pools of a home office shall be allocated to segments on the basis of the beneficial or causal relationship between the IR&D and B&P costs and the segments reporting to that home office.

  (e) The IR&D and B&P cost pools of a business unit shall be allocated to the final cost objectives of that business unit on the basis of the beneficial or causal relationship between the IR&D and B&P costs and the final cost objectives.

  (f)(1) The B&P costs incurred in a cost accounting period shall not be assigned to any other cost accounting period.

  (2) The IR&D costs incurred in a cost accounting period shall not be assigned to any other cost accounting period, except as may be permitted pursuant to provisions of existing laws, regulations, and other controlling factors.