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Assignment:
We continue our discussion on the cost objective for direct material, direct labor, other direct costs, indirect costs, facilities cost of money, and profit/fee. Focus on how this information should be communicated internally and externally. What information might be considered proprietary and why?
Also, consider cost elements in term of direct or indirect? Can the material cost be classified different- hint CAS! Do we expect contractors to track an engine block the same as they would nuts and bolts?
A student stated:
"As Contract Managers, it's important that we know all the tools available to us that will allow us to effectively procure goods and services at fair and reasonable prices. Understanding manufacturing processes, accounting of a prime or tiered manufacturers COGS and means of establishing and evaluating a cost objective (such as utilizing SCI) will enable us to successfully negotiate procurement of goods and services on behalf of the taxpayer."
Do you agree with the statement?
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