Treatment of Building Costs For Classified Work
Q. Part of our building will be dedicated to classified work so how should we classify the related costs?
A. Several options come to mind. If they are immaterial, include the costs in overhead just like you would charge any building-related costs. If it meets your pricing strategies (e.g. charge lower or higher rates to classified versus non-classified work) you could create separate classified and non-classified overhead rates. Alternatively, you could create a service center for classified facilities related costs.
