What Does Fccom Mean?

What is money Cost example?

Money Costs: It is nothing but the expenses incurred by a firm to produce a commodity.

For instance, the cost of producing 200 chairs is Rs.

10000, and then it will be called the money cost of producing 200 chairs..

Which of the following is an indirect cost pool?

Indirect cost pool expenditures typically include: Administrative salaries and fringe benefits associated with overall financial and organizational administration; Operation and maintenance costs for facilities and equipment; and, Payroll and procurement services.

What does Fccom stand for?

Facilities Capital Cost of MoneyFCCOMAcronymDefinitionFCCOMFacilities Capital Cost of Money

How is facilities capital cost of money applied to contract pricing?

Under government acquisition regulations, the cost of money for facilities capital is an allowable imputed indirect cost used for pricing government contracts. … A contractor borrowing money to purchase facilities, will pay unallowable interest on the borrowed funds.

What is cost of money in government contracts?

Cost of Money is a method of reimbursing for that opportunity cost (thus the term “imputed cost” is used to describe cost of money). The requirements for Facilities Capital Cost of Money are contained in Cost Accounting Standards 414 and 417.

Is Fccom included in cost analysis?

Do not include FCCOM in the cost base when establishing a prenegotiation profit/fee objective. … (1) Contract FCCOM for final cost determination or repricing is based on each year’s final cost of money factors determined under CAS 414 and supported by separate Forms CASB-CMF.

What are weighted guidelines?

The weighted guidelines define a structure for profit/fee analysis that includes designated ranges for objective values as well as norm values that you may tailor to fit the circumstances of your specific acquisition.

How is Fccm calculated?

Add together all the preliminary FCCM amounts from step 1. For example, $140,000 plus $360,000 plus $500,000 is $1,000,000. Divide the result from step 2 by the Treasury rate. For example, with a Treasury rate of 5 percent, divide $1,000,000 by 0.05 to obtain a total FCCM of $20,000,000.

What does cost of money mean?

: rate of interest or dividend payment on borrowed capital.

Is government contracting worth it?

Government contracting can be a way to start a small business. The market is worth over $100 billion in sales to small businesses each year. … Reoccurring monthly business generated from government contracts can also hedge against months that are slow. In fact, many contracts have 3-5 consecutive year contract terms.

What is facilities cost of money?

Facilities capital cost of money is an imputed cost related to the cost of contractor capital committed to facilities. CAS 414, Cost of Money as an Element of the Cost of Facilities Capital, provides detailed guidance on calculating the amount of facilities capital cost of money due under a specific contract.