October 2012
Intermediate to advanced
376 pages
10h 56m
English
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CHAPTER 6
Facilities Capital Cost of Money
Facilities capital cost of money (FCCOM) is an imputed cost calculated by applying the applicable cost-of-money rate to the facilities capital employed in contract performance. The cost-of-money rate is the rate established twice per year by the Treasury Department for this purpose. The facilities capital cost is not considered a form of interest. Cost Accounting Standard (CAS) 414, Cost of Money as an Element of the Cost of Facilities Capital, establishes the basic ground rules for calculating the cost of facilities capital.
FCCOM is an outgrowth of the disallowance of interest expense in cost-based pricing under FAR Part 31. FCCOM began as a CAS standard (CAS 414) intended to compensate contractors ...
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