Q. We are implementing activity based costing methods. Do we need to notify DCAA?
A. It largely depends on whether you plan on changing your accounting practices to incorporate new ABC methods or use the ABC approach off line as a kind of profitability analysis. If the former, DCAA guidelines indicate contractors and DCAA should both be involved in the process as early as possible. This “early as possible” admonition will take some judgment – you want to garner DCAA acceptance but you don’t want them to dictate the metrics you will want to decide upon.
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To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at
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