How to Record CAS 401 Cost Estimating
Accounting for adjustments required to align actual cost accumulation with the methodology used in the contract price proposal per CAS 401.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Project Costs - Materials | Asset | 15,000.00 | - |
| Indirect Cost Pool - Material Handling | Expense | - | 15,000.00 |
💡 Accountant's Note
This entry reclassifies material handling costs from an indirect pool to a direct project cost to maintain consistency with the estimating practices used in the original bid, as required by CAS 401.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure the project accounting module uses the same cost elements as the estimating system.
⚠️ Audit Flags
Changes in cost accounting practice between the proposal and execution phase.
📄 Required Documentation
Disclosure Statement (DS-1) and the original Price Proposal (BOE).
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Discussion & Community Questions
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