How to Record CAS 402 Consistency
Correcting the allocation of costs to ensure that all costs incurred for the same purpose in like circumstances are treated consistently as either direct or indirect.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| G&A Expense - Unallowable Consistency | Expense | 8,500.00 | - |
| Direct Project Costs | Asset | - | 8,500.00 |
💡 Accountant's Note
If a cost is charged directly to one contract but treated as indirect for others in similar circumstances, it violates CAS 402. This entry removes the inconsistent direct charge.
Practitioner & Systems Framework
💻 ERP Architecture
Set up validation rules in the GL to prevent specific charge codes from being used as both direct and indirect.
⚠️ Audit Flags
Double-counting of costs in both direct and indirect categories.
📄 Required Documentation
CAS Disclosure Statement and accounting policy manual.
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