Do cost accounting standards fill a gap in cost allocation?

Article Abstract:

Although full-cost allocation practices are not supported by academic research, government contracts offer considerable documentation on the subject. The framework for the use of such accounting procedures was set forth by the Cost Accounting Standards Board (CASB), prior to its dissolution. The CASB was created in 1970 and has promulgated standards constituting a general outline for full-absorption cost allocation techniques. Two particularly interesting standards are those focusing on consistency in cost allocation and allocation of corporate overhead to segments. The guidelines have been interpreted and discussed in hearings by the Armed Services Board of Contract Appeals. Despite being defunct, the CASB rules and regulations continue to carry the full force of law in the U.S.

Methods, Laws, regulations and rules, Accounting, Value analysis (Cost control), United States. Cost Accounting Standards Board

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MAP Committee issues SMA 4F, "Allocation of Information Systems Costs." (statement of management accounting issued by the Management Accounting Practices Committee of the National Association of Accountants)

Article Abstract:

Statement of Management Accounting (SMA) Number 4F issued by the Management Accounting Practices Committee of the National Association of Accountants is printed in its entirety. The management accounting standard instructs internal auditors in the accounting for costs related to the implementation of computerized information systems, allocations of such costs, and methods for controlling such costs. The standard encourages management accountants to allocate computer processing costs for users of the information services (unless the system must be promoted internally due to low usage rates), while helping accountants determine whether to use full-cost, cost-plus-profit, market pricing, or less-than-full-cost methods for accounting for the expenses.

Accounting and auditing, Information technology, Data processing, Electronic data processing, National Association of Accountants

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