Estimating system rules for government contractors
Article Abstract:
The estimating systems for determining costs of government contractors dealing with the Department of Defense (DoD) are substantially regulated. An estimating system is considered a contractor's policies, procedures, and practices for generating cost estimates based on forecasting costs from the information on hand at the time. Criteria that should be present in all estimating systems include clearly delineated lines of authority, internal controls, and management reviews. When submitting price or cost data to the DoD, contractors must have an estimating system that can support the proposals that serve as the basis of negotiation. When completing a cost proposal, a file should be completed that includes the proposal and related revision, cost worksheets, and cost analysis for material and subcontracts. When updating pricing or cost data, the contractor must consider changes to make/buy decisions, the submission of updated cost rates, and changes in escalation factors. Contractors should document all submissions during negotiations to ensure that adequate disclosure to government authorities was made.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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Taxation issues in a nonprofit environment: an analysis of the 501(c)(3) organization
Article Abstract:
Nonprofit organizations have come under increased scrutiny in recent years with regard to their tax exemption, their unrelated business income, and their private foundation status. An entity must meet specific criteria regarding organizational structure and mode of operation in order to qualify for tax-exempt status. The organization's funds should be subjected to a tax compliance review, even if there are no substantial unrelated revenues or expenses. The financial manager of a nonprofit organization should ensure that the entity meets IRS criteria for private foundation status. Tests for determining whether an organization is publicly supported or a supporting organization are discussed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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