Item
No.

2.6.2

2.6.3

2.6.4

2.7.0

2.7.1

2.8.0

COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679

PART II - DIRECT COSTS

NAME OF REPORTING UNIT

Item description

Level of Production Unit used to Accumulate Variance. Indicate which level of production unit is used as a basis for accumulating the labor variances.

Method of Disposing of Variance. Describe on a continuation sheet the basis for, and the frequency of, the disposition of the variance.

Description of Other Direct Costs. Other significant items of cost directly identified with Federal contracts or other final cost objectives. Describe on a continuation sheet the principal classes of other costs that are always charged directly, that is, identified specifically with final cost objectives, e.g., fringe benefits, travel costs, services, subcontracts, etc.

When Employee Travel Expenses for lodging and subsistence are charged direct to Federal contracts or similar cost objectives the charge is based on:

Credits to Contract Costs. When Federal contracts or similar cost objectives are credited for the following circumstances, are the rates of direct labor, direct materials, other direct costs and applicable indirect costs always the same as those for the original charges? (Mark one line for each circumstance, and for each "No" answer, explain on a continuation sheet how the credit differs from the original charge.)

Circumstance

Item No.

3.1.0

COST ACCOUNTING STANDARDS BOARD
DISCLOSURE STATEMENT
REQUIRED BY PUBLIC LAW 100-679

PART NI - DIRECT VS. INDIRECT COSTS
NAME OF REPORTING UNIT

Item description

Criteria for Determining How Costs are Charged to Federal Contracts Or Similar Cost Objectives. Describe on a continuation sheet your criteria for determining when costs incurred for the same purpose, in like circumstances, are treated either as direct costs only or as indirect costs only with respect to final cost objectives.

3.2.0

Treatment of Costs of Specified Functions, Elements of Cost, or Transactions. (For each of the
functions, elements of cost or transactions listed in Items 3.2.1, 3.2.2, and 3.2.3, enter one of the
Codes A through F, or Y, to indicate how the item is treated. Enter Code Z in those lines that are not
applicable to you. Also, specify the name(s) of the indirect pool(s) (as listed in 4.1.0, 4.2.0 and
4.3.0) for each function, element of cost, or transaction coded E or F. If Code E, Sometimes
direct/Sometimes indirect, is used, explain on a continuation sheet the circumstances under which
both direct and indirect allocations are made.)

For the purpose of this part, indirect costs have been divided into three categories: (i) manufacturing, engineering, and comparable indirect costs, (ii) general and administrative (G&A) expenses, and (III) service center and expense pool costs, as defined in Item 4.3.0. The term "overhead," as used in this part, refers only to the first category of indirect costs.

The following Allocation Base Codes are provided for use in connection with Items 4.1.0, 4.2.0 and

4.1.0

Overhead Pools. List all the overhead pools, i.e., pools of indirect costs, other than general and administrative
(G&A) expenses, that are allocated to final cost objectives without any intermediate allocations. A segment or
business unit may have only a single pool encompassing all of its overhead costs or altematively it may have
several pools such as manufacturing overhead, engineering overhead, material handling overhead, etc. For each
pool listed indicate the base used for allocating such pooled expenses to Federal contracts or similar cost
objectives. Also, for each of the pools indicate (a) the major functions, activities, and elements of cost included,
and (b) the make up of the allocation base. Use a continuation sheet if additional space is required.