How to Record CAS 405 Associated Costs
Identifies and segregates costs directly associated with unallowable costs under CAS 405.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unallowable Expense - Directly Associated | Expense | 2,400.00 | - |
| Allowable Travel Expense | Expense | - | 2,400.00 |
💡 Accountant's Note
CAS 405 requires that costs directly associated with unallowable costs (such as travel to an unallowable event) must also be identified and excluded from government billings.
Practitioner & Systems Framework
💻 ERP Architecture
Use a specific sub-account or 'statistical' account for directly associated unallowable costs to facilitate DCAA reporting.
⚠️ Audit Flags
Failing to identify travel, labor, or administrative costs linked to an unallowable activity like lobbying or entertainment.
📄 Required Documentation
Expense reports and travel vouchers cross-referenced to the primary unallowable activity.
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