When inconsistent practices and inequitable allocations exist, it would seem that contractors need to change their cost accounting practices. However, there is an alternative. Though CAS 402 does not address it, certain standards (e.g. 403, 410, 418 and 420) provide for special allocations under unique situations and FAR 31.109 recognizes that special treatments under advance agreement are permissible which can apply to CAS 402. An advance agreement would apply only in those situations which are unique to one contract. If the most equitable way to deal with a costing issue for a specific contract is to treat a particular cost as direct for this contract but to treat those costs as indirect for all other contracts an advance agreement can be used. However, the agreement must give assurance that it does not permit double counting (discussed below).

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