Cost Accounting Standard 414: Its Relationship to DOD Profit Policy

In response to a congressional request, GAO examined revisions to the Department of Defense's (DOD) profit policy to determine whether: (1) Cost Accounting Standard (CAS) 414, which establishes a method for measuring the cost of money for a contract, had continued relevance in light of current profit policy; and (2) the policy that permits the facilities investment value to be used twice in the computation of profit objectives results in double-dipping.