Uniform Contracts And Cost Accounting Definitions And Methods

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ISBN 13 : 9781331991663
Total Pages : 50 pages
Book Rating : 4.9/5 (916 download)

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Download or read book Uniform Contracts and Cost Accounting Definitions and Methods written by and published by . This book was released on 2015-07-26 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Uniform Contracts and Cost Accounting Definitions and Methods: Recommendations by Interdepartmental Conference, Consisting of Delegates From the Department of War, Navy, and Commerce, the Federal Trade Commission, and the Council of National Defence, July, 1917 These recommendations are intended to suggest to contracting officers some of the broad legal and equitable points involved in war contracts, and to express the preference of the conference for a straight purchase-and-sale contract at a fixed price, since it is simpler in terms, easier to work under, and generally speaking, productive of better and quicker results. The British Government, after several years experience, has discarded the cost-plus contract plan and adopted the straight purchase-and-sale contract in every instance possible. It is not proposed to go into the large question of policy involved in attempting to prevent demoralization of markets by excessive competition. Suffice it to say, that the Government can furnish material and component parts under either a fixed-price or a cost-plus contract, and thus protect market conditions by purchases in bulk. Recommendations and brief discussion follow: I. It is recommended that, in every instance where fair terms can be obtained, contracts should be in the form of straight purchase-and-sale contracts at fixed prices. In the determination of "fair terms" for fixed price contracts, the contractor, in so far as possible, should be required to state the cost and other factors upon which his price is based; such representations to be the subject of investigation by the contracting officer prior to the final execution of the contract, and if found to be incorrect, the price to be adjusted accordingly. What constitutes "fair terms" can be arrived at only by consideration of many factors, such as: (1) The quality and quantity of the articles purchased. (2) Whether or not the plant is adaptable to business other than war business. (3) The duration of the job and the length of time the contractors plant and capital will be tied up. Also the amount of capital tied up in comparison with the particular output contracted for. (4) The possibility of fluctuations hi material and labor costs with attendant risk to the contractor. (5) Loss in commercial business by taking Government work, which must be given precedence; disarrangement in plant organization and labor conditions. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.