Which of the following are the objectives of CAS 2?

The objective of this standard is to bring uniformity and consistency in the principles and methods of determination of capacity with reasonable accuracy. This standard shall be applied to the cost statements, including those requiring attestation, which require determination of capacity for assignment of overheads.

How will you consider capacity determination?

7.1 Normal capacity is determined based on the productive capacity achieved over a period of time, say average of three normal years out of preceding five years or expected to be achieved over a period of time, say next three to five years .

How do you calculate practical capacity?

The single cost allocation rate is multiplied by actual hours (usage) to apply costs to each division. Multiply the practical capacity rate of $766 by the actual hours used to calculate the cost allocation for each division.

How do you calculate idle capacity?

Capacity can be measured in machine hours or labour hours and idle capacity is measured in the same way. The formula is:(budgeted hours – actual hours worked × 100)/budgeted hours.

What are the 19 CAS standards?

The Cost Accounting Standards (CAS) consist of nineteen standards promulgated by the Cost Accounting Standards Board (CASB) designed to ensure uniformity and consistency in the measurement, assignment, and allocation of costs to contracts with the United States Government.

Which CAS deals with capacity determination?

The Council of the Institute of Cost Accountants of India has issued the Cost Accounting Standard – 2 (CAS – 2)(Revised 2015) on Capacity Determination which lays down a set of principles and methods of classification, and determination of capacity of an entity for ascertainment of the cost of product or service and …

What is ideal capacity?

Ideal capacity is the maximum output that a manufacturing facility can produce, assuming no downtime and no waste. It is nearly impossible to attain the ideal capacity figure, since it involves 24×7 production with no maintenance downtime, no employee breaks, no damaged equipment, and no reworked goods.

What is normal capacity utilization?

Normal capacity utilization is the level of capacity needed to meet customer demand over several years. In this case, utilization means the amount of capacity you need to meet customer demand. Any available production capacity beyond the customer demand level isn’t needed.

How do you reduce idle capacity?

To reduce idle time of the employees you can: look to create more balanced schedules and workload, especially for bigger projects with multiple team members where one task needs to be finished before the next one can begin.

What triggers CAS coverage?

Full CAS-coverage applies to contractor business units that receive either a single CAS-covered award of at least $50 million or at least $50 million in net CAS-covered awards during the preceding cost accounting period where one of those awards must be a “trigger” award of at least $7.5 million.

How many CAS standards are there?

nineteen standards
The Cost Accounting Standards (CAS) consist of nineteen standards promulgated by the Cost Accounting Standards Board (CASB) designed to ensure uniformity and consistency in the measurement, assignment, and allocation of costs to contracts with the United States Government.

What is the standard score on the Cas2?

Each PASS scale, as well as the CAS2 Full Scale, yields a standard score with a mean of 100 and a standard deviation of 15. Planning —A cognitive process requiring the individual to determine, select, and use a strategy to solve a problem. The subtests require the solving of novel tasks.

What does CAS mean in Cost Accounting Standards Administration?

Affected CAS-covered contract or subcontract means a contract or subcontract subject to Cost Accounting Standards (CAS) rules and regulations for which a contractor or subcontractor- (1) Used one cost accounting practice to estimate costs and a changed cost accounting practice to accumulate and report costs under the contract or subcontract; or

How does the CAS2 cognitive assessment system work?

The CAS2: Rating Scale is a well-researched, norm-referenced measure of cognitive ability based on the PASS theory of intelligence (Planning, Attention, Simultaneous, and Successive) completed by teachers. The rating scale provides scores for Planning, Attention, Simultaneous, and Successive scales as well as a Total Score.

What are the four scales in the CAS2 system?

Standard scores for the four scales and the full battery for CAS2, Percentile rank and standard score for the four scales and the Total Scale for CAS: Rating Scale; Total Score, scaled score for each subtest, percentile rank, and index score for CAS2: Bri Individual administration