May 2009
Beginner to intermediate
272 pages
8h 44m
English
Content preview from Guide to Contract Pricing, 5th Edition
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CHAPTER 7
Analysis of Direct Material and Other Direct Costs
As has been previously stated, FAR 2.101 describes a direct cost as “any cost that can be identified specifically with a particular final cost objective.” We have been using terms somewhat simpler than “final cost objective” and will continue to do so. For our purposes, the final cost objective is a term for proposed contract, task, or work. FAR 31.202 states the following:
(b) For reasons of practicality, any direct cost of minor dollar amount may be treated as an indirect cost if the accounting treatment— (1) Is consistently applied to all cost objectives; and (2) Produces substantially the same results as treating the cost as a direct cost.
The above aspect of the FAR description ...
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