Easily Replace Smart Field to the Accounting Contract

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How to Replace Smart Field to the Accounting Contract

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In this session with Professor Forhat, the focus is on accounting changes, specifically changes in accounting estimates. Companies frequently make estimates for items like bad debt expense and warranty expense. Bad debt expense requires an estimate of future losses, while warranty expense involves predicting future costs associated with product warranties. Each of these expenses is recorded based on an estimate, even though future outcomes are uncertain. The professor emphasizes the importance of these estimates in the accounting process and how they impact financial statements, highlighting the need to allocate costs accurately over the relevant periods.

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What is an administrative change to a contract?

Administrative change means a unilateral (see 43.103(b)) contract change, in writing, that does not affect the substantive rights of the parties (e.g., a change in the paying office or the appropriation data).

What triggers CAS coverage?

Full CAS-coverage applies to contractor business units that receive either a single CAS-covered award of at least $50 million or at least $50 million in net CAS-covered awards during the preceding cost accounting period where one of those awards must be a trigger award of at least $7.5 million.

What are the exemptions for CAS coverage?

Small Business Exemption Qualification If the contractor has not previously been awarded a contract that was CAS-covered, then anything, where they are other than small businesses, will not be subject to CAS, as long as it is less than $7.5M in contract value.

Which 4 standards are applicable to contracts under modified CAS coverage?

(1) Modified CAS coverage requires only that the contractor comply with Standard 9904.401, Consistency in Estimating, Accumulating, and Reporting Costs, Standard 9904.402, Consistency in Allocating Costs Incurred for the Same Purpose, Standard 9904.405, Accounting for Unallowable Costs and Standard 9904.406, Cost

What type of modification is used to make an administrative change to a contract?

A unilateral modification (change order) may be used to: Make administrative changes. Issue change orders under a contract change or other clause.

Who determines whether or not a contract may require CAS coverage?

30.202-6 Responsibilities. (a) The contracting officer is responsible for determining when a proposed contract may require CAS coverage and for including the appropriate notice in the solicitation.

Which of the following situations would exempt a contract or subcontract from CAS coverage?

Answer choice: D. The contract or subcontract is with a small business.

Who is exempt from CAS?

CAS exemptions include the following: Contract is with an entity that is a small business. Prices are set by law or regulation. Contact/subcontract is with a foreign government. Contract is firm-fixed price (FFP) and awarded on the basis of adequate competition and no submission of cost or pricing data.

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Replace Smart Field to the Accounting Contract