MINISTRY OF DEFENCE - Metasums - Ministry of defense uk

MINISTRY OF DEFENCE

Cost Assurance Service (CAS)

ON BEHALF OF

HER MAJESTY'S GOVERNMENT

|Contractor: |

|Nature of Industry: |

|Address: |

|Telephone Number: |Fax No: |

QUESTIONNAIRE

ON

METHOD OF ALLOCATION OF COSTS

for the year commencing:

covering : (a) the whole of the operations of the contractor

(b) only the following :

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This Restricted - Commercial document contains sensitive information.

Photocopies or electronic transfers should be limited to a need to know basis.

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Distribution continued overleaf...

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SUMMARY OF SCHEDULES

|SCHEDULE |TITLE |PAGE No. |

| |CERTIFICATE |1 - 2 |

| |GENERAL ADVICE AND INSTRUCTIONS |3 - 4 |

|1 |GENERAL SYSTEMS INFORMATION |5 - 6 |

|2 |BASES FOR RECOVERY OF OVERHEAD EXPENSES |7 - 8 |

|3 |BASES OF COMPUTATION OF DIRECT LABOUR |9 - 13 |

|4 |BASES OF ALLOCATING COSTS AS DIRECT CHARGE OR OVERHEAD CHARGE |14 |

|4A |PRODUCTION/MANUFACTURING |15 - 17 |

|4B |PROCESS AND SERVICES |18 - 22 |

|4C |ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND SOFTWARE |23 - 27 |

|4D |OUTSIDE WORK |28 - 31 |

|4E |RESEARCH AND DEVELOPMENT |32 - 33 |

|4F |SELLING AND MARKETING |34 - 36 |

|5 |MATERIALS |37 - 43 |

|6 |HIRED LABOUR |44 - 45 |

|7 |MISCELLANEOUS COSTS |46 - 52 |

|8 |MISCELLANEOUS CREDITS |53 - 54 |

|9 |OVERHEAD RECOVERIES |55 |

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To:

CAS

Ministry of Defence

CERTIFICATE

This certificate’s standard wording must not be altered without the prior authorisation of CAS

I certify on behalf of

that, to the best of my knowledge and belief the bases of allocation of costs as detailed in the following schedules and appendices numbered together with the marginal notes and remarks are a complete, accurate and up to date description of the costing system which will be followed for the purposes of pricing all non competitive H.M. Government work, for the year commencing

All known departures from our normal system of allocation of costs for the purpose of pricing non competitive Government contracts have been agreed in advance with your branch and are indicated on the attached schedules and appendices.

Any proposed changes will be notified to your branch in writing prior to the change with sufficient time allowed for discussion and comment.

Signature . :

Name :

Financial Director:

(or in the case of authorised signatory, please state office held)

|Name of Contractor: |

Date :

Certification is for QMAC, Issue dated

Cont...

CERTIFICATE Continued

Noted and Agreed

Contractor's Chief Estimator . : Signature

(or equivalent office held)

: Name

Date :

Noted and Agreed

Senior Cost Engineer

CAS . : Signature

: Name

: Section

Date :

Noted and Agreed

Investigating Accountant

CAS . : Signature

: Name

: Section

Date :

Certification is for QMAC, Issue dated

GENERAL ADVICE AND INSTRUCTIONS

1. The Questionnaire on the Method of Allocation of Costs (QMAC) is issued by the MOD CAS to support the pricing of HMG non competitive contracts. A standard QMAC is used for all types of organisations whether they are in the manufacture or the service sector. The layout and content of the QMAC has been agreed between the MOD and the Joint Review Board Advisory Committee (on behalf of British Industry).

2. The QMAC has been designed to describe the contractor's cost accounting and estimating practices as they affect the pricing of all HMG non competitive work. It is therefore incumbent upon the persons completing it to give the document their earnest consideration and ensure that answers and explanations given are complete, accurate and up to date in every respect.

3. A QMAC should be submitted by the contractor before the commencement of the relevant financial year to support the totality of their H.M.G. non competitive work ( e.g. their claims for overhead rates, costs under Defcons 643 and 653 and post-costing under Defcon 648 or their equivalents) during the period covered by the QMAC. The QMAC forms an important part of the disclosure of information required for the pricing of non competitive contracts.

4. A full QMAC should be completed and submitted at least once every 3 years, or in exceptional circumstances annually at the request of H.M.G. For the intervening years an annual renewal booklet showing "changes" or "no changes" as appropriate should be submitted.

5. A separate QMAC must be submitted covering the practices at each of the contractor's divisions or organisational units involved in HMG non competitive work where the cost accounting practices are not similar. Where the practices are similar, only one QMAC need be submitted, but each organisational unit must be identified.

6. In addition to the UK QMAC, a UK Supplemental QMAC must be completed by U.K. contractors whose work with the U.S. Government meets the Cost Accounting Standards (CAS) board’s requirements for disclosure of cost accounting practices at 48 CFR 9903.202-1(b). Completion of both the UK QMAC and UK Supplemental QMAC will exempt U.K. Contractors from requirement to complete the U.S Disclosure Statement CASB-DS-1. All U.K. contractors performing U.S Government contracts must comply with applicable CAS Board rules and regulations as contained in CFR 9903. In addition, 48 CFR 9903.201-1(b)(4) requires that U.K. contractors comply with 48 CFR 9904.401 and 402 which cover consistency in estimating, accumulating and reporting of costs; and, consistency in estimating, accumulating and reporting of costs; and, consistency in allocating costs incurred for the same purpose.

Cont...

GENERAL ADVICE AND INSTRUCTIONS Continued

7. Any proposed changes to the accounting or costing systems or procedures must be formally notified to CAS prior to the change allowing sufficient time for discussion and comment. MOD will not necessarily accept liability for any costs incurred unless proper consultation has taken place.

8. Full use should be made of the "Remarks" column to amplify or explain any allocation, or when an answer to a "yes" or "no" question needs further clarification. The contractor's costing system should be the same for H.M.G. and commercial work. If it is proposed that the allocation on Government work should differ from that on commercial work this should be clearly stated and full explanations provided.

9. Clear definitions must be used to avoid ill-defined allocations such as "D/X". "D/X" allocations will only be accepted in exceptional circumstances, and where the segregation of costs can be clearly defined.

10. Where space on the printed schedules is insufficient to give the required information extra schedules or appendices to schedules, as appropriate should be used. Spare sheets are available for such use. With the electronic version of this QMAC use the toolbar button to insert additional sheets for recording the information.

11. All extra schedules and appendices must be numbered and listed in the summary of schedules.

12. In the case of questions dealing with accounting, costing and estimating systems and procedures, reference should be made to the relevant sections of the contractor's procedure manual(s).

13. If any difficulty is experienced in completing the QMAC or if there are any queries or matters requiring prior discussion, contact should be made with the CAS investigating accountant.

SCHEDULE 1

GENERAL SYSTEMS INFORMATION

1. Describe your cost accounting system (tick the appropriate box/es):

REMARKS

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a. Standard Costs - Job

b. Standard Costs - Process

c. Actual/Recorded/Incurred Costs - Job

d. Actual/Recorded/Incurred Costs - Process

e. Other (describe below or on a separate sheet)

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2. Is your cost accounting system capable of producing incurred or derived job/unit costs?

YES NO

a. During the currency of a contract

b. On completion of a contract

If the answer to either of the these is NO you are unlikely to be able to satisfy the requirements of:

Defcon 643, or its equivalent

(price fixing)

Defcon 648, or its equivalent

(availability of information)

Defcon 653, or its equivalent

(pricing on ascertained costs)

You should therefore discuss the situation with the relevant CAS officer.

Cont...

SCHEDULE 1

GENERAL SYSTEMS INFORMATION Continued

3. Are your cost accounting and financial systems fully integrated?

YES NO

If NO, are the cost accounts reconciled with the financial accounts?

YES NO

If YES, how frequently is the reconciliation prepared?

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If NO, how, and how frequently, is the authenticity of the cost accounts verified.

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SCHEDULE 2

BASES FOR RECOVERY OF OVERHEADS

1a. Give full details of the bases for recovery of all overhead expenses on the schedule below.

|Description |Bases of Recovery |Cost Allocation |

|of Cost Centre |e.g Machine Hour Rate |Per Schedule No. |

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b. Specify any current or anticipated departure(s) from above for estimating purposes on HMG non competitive pricing.

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Cont...

SCHEDULE 2 Continued

2. METHOD OF DEALING WITH TARIFF, STANDARD OR SPECIAL SCALE RATES

(Overhead element - see Schedule 3 para.3 for the Labour element, in many cases a combined charge will cover all elements)

Examples: Crane Hire, Computer Charges, Print Charges

If tariff, standard or special scale rates are used, give details (on separate sheets if necessary) of:

a. List rates used

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b. Method of apportionment of costs

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c. Method of computation of recovery base

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d. Method of dealing with under/over recoveries

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e. Frequency of revision of rates

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3. METHOD OF DEALING WITH SPECIAL CASES

a. Is any labour charged direct without any overhead recovery?

YES NO

If YES, give details

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b. Is any "own" labour charged direct with a special or non standard rate?

YES NO

If YES, give details (This should cross reference to schedule 3)

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SCHEDULE 3

DIRECT LABOUR

1. BASIS OF RATE CALCULATION

a. State basis used to determine, hourly, daily etc. rate of Direct Charge (D) (e.g. individual rates - typically hourly average, weekly, monthly or quarterly average rates, for each type of direct worker) for:

i. Estimating

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ii. Cost Recording

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b. State whether the Direct Charge rates are reviewed and if they are, how often?

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Cont...

SCHEDULE 3

DIRECT LABOUR Continued

2. DIRECT BOOKINGS BY INDIRECT WORKERS (CONTRA DIVERSIONS)

State method of dealing with direct bookings, if any, by indirect workers;

a. Manufacturing

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b. Engineering

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c. Drawing Office

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d. Research

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e. Others

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f. If none state none

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Example Statement:

"Overhead and direct labour rates will be calculated and charged as per the centre where the work is carried out. The hours or cost will be included in the direct labour base."

Cont...

SCHEDULE 3

DIRECT LABOUR Continued

3. METHOD OF DEALING WITH TARIFF, STANDARD OR SPECIAL SCALE RATES

(Direct Labour element - see Schedule 2 para. 2 for the Overhead element in many cases a combined charge will cover all elements)

Examples: Crane Hire, computer charges, Print Charges

If tariff, standard or special scale rates are used, give details (on separate sheets if necessary) of:

a. List rates used.

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b. Method of rate computation

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c. Method of dealing with under/over recoveries

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d. Frequency of revision of rates

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Cont...

SCHEDULE 3

DIRECT LABOUR Continued

4. Indicate which of the supplementary elements below are included in the rate of Direct Charge (D) and which are included in the Overhead Charge (X).

A = Factory or Shop

B = Design, Drawing Office, Technical Services

C = Outside Work

D = Other Services:

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D = Direct Charge

X = Overhead Charge

| |A |B |C |D |REMARKS |

|Attendance at Meetings | | | | | |

|Back Dated Awards | | | | | |

|Bonuses: Piece Work | | | | | |

|Productivity | | | | | |

|Merit | | | | | |

|Output | | | | | |

|Others: | | | | | |

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|Employers Contributions: | | | | | |

|National Insurance | | | | | |

|Company Pensions | | | | | |

|Other: | | | | | |

|Guaranteed Week Supplement | | | | | |

|Holiday Pay: Statutory | | | | | |

|Annual | | | | | |

Cont...

SCHEDULE 3

DIRECT LABOUR Continued

A = Factory or Shop

B = Design, Drawing Office, Technical Services

C = Outside Work

D = Other Services:

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D = Direct Charge

X = Overhead Charge

| |A |B |C |D |REMARKS |

|Idle Time | | | | | |

|Waiting Time | | | | | |

|National awards - where awards are in Overheads | | | | | |

|state date of base rate | | | | | |

|Premiums: Night Shift | | | | | |

|Other Shift | | | | | |

|Overtime | | | | | |

|Other: | | | | | |

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|Redundancy Payments | | | | | |

|Redundancy Rebates | | | | | |

|Sick Pay | | | | | |

|Tea Breaks | | | | | |

|Others: | | | | | |

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SCHEDULE 4

BASES OF ALLOCATING COSTS AS DIRECT CHARGE OR OVERHEAD

1. Complete set of schedules for each area for which there is separate allocation, of the types, trades or functions of all workers whose time is charged direct.

2. Separate schedules are required for:

A. PRODUCTION/MANUFACTURING - one for each separate overhead rate used (see Note 2 below)

B. PROCESSES AND SERVICES

C. ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND SOFTWARE

D. OUTSIDE WORK

E. RESEARCH AND DEVELOPMENT

F. SELLING AND MARKETING

NOTE 1. The headings listed in the succeeding schedules, 4A, B, C, D, E and F should not be regarded as comprehensive or applicable to every industry. Items should be marked not applicable or added to as necessary to give a complete statement of activities. Other schedules should be supplied for any areas not covered above.

NOTE 2. The minimum number of forms is required - separate schedules will only arise when there are different allocations.

SCHEDULE 4A

PRODUCTION/MANUFACTURING

1. List below, or on separate schedules as necessary, all types, trades or functions which are recorded as a direct charge.

|TYPE/TRADE/FUNCTION |DEPT/SHOP/COST CENTRE |COST CODE |

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Cont...

SCHEDULE 4A

PRODUCTION/MANUFACTURING Continued

2. Indicate against the specific items listed below those which are recorded as Direct Charge (D) and which as Overhead Charge (X). (Any item marked (D) must also have appeared in 4A1 above).

| | D or |REMARKS |

| |X | |

|Apprentices | | |

|Chargehands | | |

|Foreman/Supervisor | | |

|Inspectors and Quality Controllers: | | |

|a. Bench or Patrol | | |

|b. Goods Inwards | | |

|c. Quality Control | | |

|d. CRSP/Embodiment Loan Stores | | |

|e. Survey Assessors | | |

|Labourers: | | |

|a. On General Shop Work | | |

|b. Assisting Productives | | |

|Maintenance Workers | | |

|Setters: | | |

|a. Full-Time setters | | |

|b. Setter Operators | | |

|Shop Clerks | | |

Cont...

SCHEDULE 4A

PRODUCTION/MANUFACTURING Continued

2. ...

| | D or |REMARKS |

| |X | |

|Storekeepers | | |

|Testers : | | |

|a. Materials (including laboratory tests) | | |

|b. During Production | | |

|c. Finished Products: | | |

|Own Manufacture | | |

|Outside Supplies | | |

|d. Non Destructive | | |

|e. Environmental | | |

|f. Automatic Testing | | |

|Timekeepers | | |

|Trial Teams | | |

|Packers | | |

|Planning Engineers | | |

|Works Liaison Engineers | | |

|Others: | | |

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SCHEDULE 4B

PROCESSES AND SERVICES

1. If separate overhead rates are used indicate the basis of computation (Cross reference to schedule 2).

2. If direct recovery is achieved by the use of Tariff or Scale Charges, indicate the method used and the area involved Cross reference to schedules 2 and 3).

3. If the costs are not separated from Production, indicate the items treated as Direct Charges (D) and those treated as Overhead Charges (X).

D = Direct Charge L = Labour

X = Overhead Charge M = Material

|PROCESSES |Tick |L |M |REMARKS |

| |In Sub. | | | |

| |House Cont. | | | |

|Anodising | | | | |

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|Bonding | | | | |

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|Deburring | | | | |

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|Degreasing | | | | |

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|Foundry | | | | |

| | | | | |

|Furnace Power | | | | |

| | | | | |

|Heat Treatment | | | | |

| | | | | |

|Painting | | | | |

| | | | | |

Cont...

SCHEDULE 4B

PROCESSES AND SERVICES Continued

D = Direct Charge L = Labour

X = Overhead Charge M = Material

|PROCESSES |Tick |L |M |REMARKS |

| |In Sub. | | | |

| |House Cont. | | | |

|Plating | | | | |

| | | | | |

|Polishing | | | | |

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|Sand or Shot Blasting | | | | |

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|Welding | | | | |

| | | | | |

|Flow (Wave) Soldering | | | | |

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|Reflow Soldering | | | | |

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|Carbon (Matrix) Fibre | | | | |

| | | | | |

|Ceramics | | | | |

| | | | | |

|Electron Beam Machining | | | | |

| | | | | |

|Electron Beam Welding | | | | |

| | | | | |

|Electro Chem. Machining | | | | |

| | | | | |

Cont...

SCHEDULE 4B

PROCESSES AND SERVICES Continued

D = Direct Charge L = Labour

X = Overhead Charge M = Material

|PROCESSES |Tick |L |M |REMARKS |

| |In Sub. | | | |

| |House Cont. | | | |

|Others: | | | | |

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Cont...

SCHEDULE 4B

PROCESSES AND SERVICES Continued

D = Direct Charge L = Labour

X = Overhead Charge M = Material

|SERVICES |Tick |L |M |REMARKS |

| |In Sub. | | | |

| |House Cont. | | | |

|Computer Facilities | | | |

|State basis of Recovery (e.g. Cost Per Unit or Second, etc) | | | |

|IN EACH CASE IF TARIFF RATE USED REFER TO SCHEDULE 2 (2) AND| | | |

|3 (3) | | | |

|a. For Central Services | | | | |

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|b. Bureau | | | | |

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|c. In aid of Design/Eng. | | | | |

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|d. In aid of Manufacture | | | | |

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|e. Test | | | | |

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|f. Others (Specify) | | | | |

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|Electricity | | | | |

| | | | | |

|Gases - Industrial | | | | |

| | | | | |

|Gases - Heating | | | | |

| | | | | |

Cont...

SCHEDULE 4B

PROCESSES AND SERVICES Continued

D = Direct Charge L = Labour

X = Overhead Charge M = Material

|SERVICES |Tick |L |M |REMARKS |

| |In Sub. | | | |

| |House Cont. | | | |

|Water | | | | |

| | | | | |

|Hired Plant | | | | |

| | | | | |

|Non Destructive Testing | | | | |

| | | | | |

|Plasticising | | | | |

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|Others: | | | | |

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Cont...

SCHEDULE 4C

ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND

SOFTWARE

1. Indicate the area regarded as Direct Labour for the purpose of computing the Engineering, Design etc. Overhead Rate(s).

|DEPT/COST CENTRE CODE |DESCRIPTION |

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2. Is a common Overhead Rate used for determining the cost of the following?

YES NO

Engineering

Design

Experimental, Research and Development

Work in aid of Production

Jigs, Tools and Pattern Design

Project / Project Support

Preparation of Technical Publications

Work in aid of Installation

Services to other Departments

If NO, give details:

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Cont...

SCHEDULE 4C

ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND

SOFTWARE Continued

3. If any costs are regarded as part of the "Production" overhead charges indicate clearly the items so treated in the relevant sections of the schedule.

D = Direct X = Design Overheads XP = Production Overheads

1 = Engineering 5 = Jigs, Tools and Pattern Designs

2 = Design 6 = Preparation of Tech. Publications

3 = Experimental Research/Development 7 = Work in aid of Installation

4 = Work in aid of Production 8 = Services to other Departments

| |1 |2 |3 |4 |5 |6 |7 |8 |REMARKS |

|Managers | | | | | | | | | |

|Supervisors | | | | | | | | | |

|Project Engineers | | | | | | | | | |

|Prod'n Engineers | | | | | | | | | |

|Design Engineers | | | | | | | | | |

|Senior Draughtsmen | | | | | | | | | |

|Draughtsmen | | | | | | | | | |

|Stressmen | | | | | | | | | |

|Weights Engineers | | | | | | | | | |

|Mathematicians | | | | | | | | | |

|Tracers | | | | | | | | | |

Cont...

SCHEDULE 4C

ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND

SOFTWARE Continued

D = Direct X = Design Overheads XP = Production Overheads

1 = Engineering 5 = Jigs, Tools and Pattern Designs

2 = Design 6 = Preparation of Tech. Publications

3 = Experimental Research/Development 7 = Work in aid of Installation

4 = Work in aid of Production 8 = Services to other Departments

| |1 |2 |3 |4 |5 |6 |7 |8 |REMARKS |

|Test Engineers | | | | | | | | | |

|Laboratory Technicians | | | | | | | | | |

|Model Makers | | | | | | | | | |

|Technical Authors | | | | | | | | | |

|Technical Clerks | | | | | | | | | |

|Illustrators | | | | | | | | | |

|Photographers | | | | | | | | | |

|Print Room Staff | | | | | | | | | |

|Consultants | | | | | | | | | |

|Programmers | | | | | | | | | |

|Systems Analysts | | | | | | | | | |

|Clerical / Admin | | | | | | | | | |

|Others: | | | | | | | | | |

| | | | | | | | | | |

Cont...

SCHEDULE 4C

ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND

SOFTWARE Continued

D = Direct X = Design Overheads XP = Production Overheads

1 = Engineering 5 = Jigs, Tools and Pattern Designs

2 = Design 6 = Preparation of Tech. Publications

3 = Experimental Research/Development 7 = Work in aid of Installation

4 = Work in aid of Production 8 = Services to other Departments

| |1 |2 |3 |4 |5 |6 |7 |8 |REMARKS |

|Materials: | | | | | | | | | |

|Drawing Office | | | | | | | | | |

|Software | | | | | | | | | |

|Laboratory | | | | | | | | | |

|Services & General Admin | | | | | | | | | |

|Travel & Subsistence | | | | | | | | | |

|Entertainment | | | | | | | | | |

|Abortive Work | | | | | | | | | |

|Hired Services: | | | | | | | | | |

|Sub Contract (Not on | | | | | | | | | |

|Contractor's premises) | | | | | | | | | |

| | | | | | | | | | |

| | | | | | | | | | |

Cont...

SCHEDULE 4C

ENGINEERING, DESIGN, DRAWING OFFICE, TECHNICAL SERVICES AND

SOFTWARE Continued

D = Direct X = Design Overheads XP = Production Overheads

1 = Engineering 5 = Jigs, Tools and Pattern Designs

2 = Design 6 = Preparation of Tech. Publications

3 = Experimental Research/Development 7 = Work in aid of Installation

4 = Work in aid of Production 8 = Services to other Departments

| |1 |2 |3 |4 |5 |6 |7 |8 |REMARKS |

|Additional Hired | | | | | | | | | |

|Labour | | | | | | | | | |

|(On Contractor's | | | | | | | | | |

|premises) If allocation | | | | | | | | | |

|differs from that of own | | | | | | | | | |

|personnel give details | | | | | | | | | |

| | | | | | | | | | |

|If charged direct, state | | | | | | | | | |

|basis of charge for each | | | | | | | | | |

|category but also | | | | | | | | | |

|see Schedule 6 | | | | | | | | | |

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SCHEDULE 4D

OUTSIDE WORK

(Site Workers, Service Mechanics etc.)

1. Indicate the basis of recovery in the case of workers working away from the Contractor's premises.

D = Direct Charge X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Charge Hands | | |

|Foremen | | |

|Inspectors | | |

|Labourers | | |

|Resident Site Managers | | |

|Site Clerks | | |

|Storekeepers | | |

|Testers | | |

|Timekeepers | | |

|Others: | | |

| | | |

| | | |

2. State what criteria is involved in the classification of "Site Workers".

Cont...

SCHEDULE 4D

OUTSIDE WORK Continued

3. State the basis of recovery of the following types of expenditure and in the case of items shown as "Direct" indicate in the remarks column whether part of Direct Labour rate.

D = Direct Charge X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Car Mileage Allowance | | |

|Carriage to Site | | |

|Consumable Stores | | |

|Consumable Tools | | |

|Electricity | | |

|Entertainment Allowances | | |

|Hired Plant | | |

|Portable Plant | | |

|Site Office Expenses | | |

|Subsistence Allowances | | |

|Telephones | | |

| | | |

Cont...

SCHEDULE 4D

OUTSIDE WORK Continued

D = Direct Charge X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Travelling Expenses | | |

|Travelling Time | | |

|Waiting Time | | |

|Vehicles | | |

|Other Items | | |

| | | |

NOTES:

i) The above treatment is mainly designed to cover away work engaging a number of personnel. The treatment of short visits by individuals, specialists or small groups should be detailed if it differs from that shown above.

ii) If any of the items above are charged by means of a Scale or Tariff, mark "S" against the item concerned and give details on Schedule 2.

Cont...

SCHEDULE 4D

OUTSIDE WORK Continued

4. Give details below of basis of computation of any separate overhead rate and the base of direct labour to which they apply.

| |

SCHEDULE 4E

RESEARCH AND DEVELOPMENT

(Covering Basic Research, Applied Research and Product Development)

1. Is a common basis used for computing the costs of the following type of Research and Development work:

YES NO

Specific Contracts or Orders

Specific Private Venture Projects

Part Funded Projects (DTI, etc)

If NO to any of the above, give details of the basis of computing such costs. (This should agree to Schedule 2)

| |

2. Give details of basis of charging Research and Development sub-contracted to "outside" firms or organisations.

| |

3. Give details of charges for R & D from other group companies or divisions including Central Research departments:-

a. State the basis of such charges:-

| |

b. Show the allocation of such charges:-

| |

Cont...

SCHEDULE 4E

RESEARCH AND DEVELOPMENT Continued

4. Overhead Recovery on R & D work.

State whether the following form part of the base for Overhead Recovery purposes:

YES NO REMARKS

| |

Specific Contracts R & D

PV R & D

Partly Funded

Sub Contract

Group/Divisional Charges

| |

5. Specify below the product groups to which you allocate R & D costs:

| |

SCHEDULE 4F

SELLING AND MARKETING COSTS

1. Do the following categories of labour attract overhead recovery:

YES NO REMARKS

a. Work on Proposals & Tenders:

| |

Manufacturing

Engineering/Design/Software

Marketing Dept.

b. Direct Selling Effort:

Manufacturing

Engineering/Design/Software

Marketing Dept.

c. Advertising - Publicity

Manufacturing

Engineering/Design/Software

Marketing Dept.

2. Charges from Divisional or group HQ marketing departments:

YES NO REMARKS

| |

Do you receive such charges?

If YES:

a. State basis of charge:

| |

Cont...

SCHEDULE 4F

SELLING AND MARKETING COSTS Continued

b. State type of expense covered by the charge:

YES NO REMARKS

| |

Overseas Sales Promotion

Market Research

Central Publicity - Advertising

Group Marketing Administration

Central PVR & D

Other (describe on separate sheet)

3. Are the product groups to which Selling & Marketing expenses are charged, identical to those shown on Schedule 4E for R & D charges?

YES NO

If NO, specify below the product groups used for the allocation of Selling and Marketing expenses.

| |

Cont...

SCHEDULE 4F

SELLING AND MARKETING COSTS Continued

4. If possible specify below the expenditure which falls into the classification of Selling and Marketing costs recommended by the Review Board for Government Contracts.

1 = Market Research & Advertising

2 = Selling Costs

3 = Technical & Liaison

Tick as appropriate

|Account Code |Expense Description |1 |2 |3 |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

| | | | | |

SCHEDULE 5

MATERIALS

METHOD OF CHARGING DIRECT MATERIALS

State, in respect of each category, how Direct Materials are treated for costing purposes:-

A. ISSUED FROM STOCK

DIRECT MATERIAL CATEGORY

Manufacturing Engineering Other

Actual Cost

Actual Cost plus Handling/Administration Charge

First in, First out (F.I.F.O.)

Base Stock

Last in, First out (L.I.F.O.)

Average Costs (specify simple or rolling

Standard Costs

Other (describe on separate sheets)

Specify any departures for estimating purposes:

| |

Cont...

SCHEDULE 5

MATERIALS Continued

B. BOUGHT OUT PURCHASES NOT THROUGH THE STOCK ACCOUNT

DIRECT MATERIAL CATEGORY

Manufacturing Engineering Other

Actual Invoiced Costs

Actual Cost plus Handling/Administration charge

Standard Costs

Other(s) (Describe on separate sheet (s))

i. Specify any departures for purchases from other group companies:

| |

ii. Specify any departures for estimating purposes:

| |

C. TRANSFERS FROM INTERNAL GROUP SOURCES

i. WITHIN THE SAME CP:CE UNIT

DIRECT MATERIAL CATEGORY

Manufacturing Engineering Other

Actual Cost plus Handling/Administration Charges

Standard Costs

Other(s) (Describe on separate sheet(s))

Specify any departures for estimating purposes:

| |

Cont...

SCHEDULE 5

MATERIALS Continued

ii FROM ANOTHER CP:CE UNIT

DIRECT MATERIAL CATEGORY

Manufacturing Engineering Other

Actual Cost excluding Profit

Actual Cost plus Handling/Administration Charges

Actual Cost including Profit

Standard Costs

Other(s) (Describe on separate sheet(s))

Specify any departures for estimating purposes:

| |

Cont...

SCHEDULE 5

MATERIALS Continued

D. METHOD OF DEALING WITH SPECIAL SITUATIONS

(Describe on separate sheet(s) if necessary)

1. Transfers between contracts

| |

2. Transfers between Cost Collection Numbers

| |

3. Apportionment of Bulk Purchases

| |

4. Surplus Stocks and Work in Progress:

a) Valuation

| |

b) Transfer of surplus materials from one contract to another or to stock

| |

c) Disposal of items for which no use identified

| |

Cont...

SCHEDULE 5

MATERIALS Continued

5. Explain the following, on separate sheets if necessary:-

a. In the case of items charged at Standard :

i) How the Standards are set

| |

ii) How the variances are treated

| |

iii) How often Standards are revised

| |

b. In the case of items charged at Average Cost :

i) How the averages are calculated

| |

ii) How often the averages are recalculated

| |

c. In the case of items charged at FIFO, LIFO or Replacement Cost how are input costs calculated?

| |

6. In the case of items charged using other valuations, explain how the valuations are made.

| |

Cont...

SCHEDULE 5

MATERIALS Continued

7. Are Consumable items recovered through overheads?

YES NO

Are Consumable items issued and valued using the same method as described above?

YES NO

If NO, explain the method used :

| |

List on the following schedule all items designated as "Consumable"

NB Consumable stores are usually low value items which are consumed during the course of manufacturing a product.

LIST OF CONSUMABLE ITEMS

D = Direct Charge

X = Overhead Charge

|ITEMS |D |REMARKS |

| |or | |

| |X | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

Cont...

SCHEDULE 5

MATERIALS Continued

LIST OF CONSUMABLE ITEMS

D = Direct Charge

X = Overhead Charge

|ITEMS |D |REMARKS |

| |or | |

| |X | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

SCHEDULE 6

(see schedule 4c)

HIRED LABOUR

1. NOT EMPLOYED ON CONTRACTOR'S PREMISES

D = Direct Charge

X = Overhead Charge

|CATEGORY |D |REMARKS |

| |or | |

| |X | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

2. EMPLOYED ON CONTRACTOR'S PREMISES

D = Direct Charge

X = Overhead Charge

|CATEGORY |D |REMARKS |

| |or | |

| |X | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

Cont...

SCHEDULE 6

HIRED LABOUR Continued

3 a. If the allocation differs from that applied to own personnel give details

| |

b. If charged Direct state basis of charge for each category

| |

c. If the hired labour is provided by a transfer from internal group sources how is the transfer charge computed? Does the charge include an administration premium and/or profit element? Is the hired labour from another CP:CE unit?

| |

SCHEDULE 7

MISCELLANEOUS COSTS

(1) Jigs, Tools, Patterns etc

(2) Special Equipment

(3) Scrap and Rectification

(4) Packing

(5) Spares Price Labelling

(6) Carriage and Transport

(7) Work of a Capital nature carried out by own workers

(8) Any other items

The treatment of these items varies considerably. Some may be separately costed by the use of special overhead rates or the labour content may attract overhead charges at normal factory rates.

The costs so computed together with charges from outside suppliers may be treated as Direct Charges or Overhead Charges according to the nature of the costs or the circumstances in which they are incurred.

This Schedule should therefore be completed in such a way as to indicate quite clearly the method of cost computation (own work) and the basis of the charge.

Cont...

SCHEDULE 7

MISCELLANEOUS COSTS Continued

(Own make & Bought out)

1. JIGS, TOOLS, PATTERNS ETC.

D = Direct Charge

X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Consumable Tools | | |

|Jigs, Tools, Gauges subject to Defcon 23 or equivalent | | |

| | | |

|a. First Cost | | |

| | | |

|b. Maintenance | | |

| | | |

|c. Replacements | | |

| | | |

|Jigs, Tools, Gauges not subject to Defcon 23 or equivalent | | |

|Patterns and Moulds subject to Defcon 23 or equivalent | | |

| | | |

|a. First Cost | | |

| | | |

|b. Maintenance | | |

| | | |

|c. Replacements | | |

| | | |

|Patterns and Moulds not subject to Defcon 23 | | |

| | | |

| | | |

| | | |

NOTE - Defcon 23 refers to patterns, moulds, jigs, tools and gauges owned by MoD whose acquisition is subject to MoD approval and are charged direct to contract.

Cont...

SCHEDULE 7

MISCELLANEOUS COSTS Continued

(Own make & Bought out)

2. SPECIAL EQUIPMENT

D = Direct Charge

X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Equipment subject to Defcon 23 or equivalent | | |

| | | |

|a. First Cost | | |

| | | |

|b. Maintenance | | |

| | | |

|c. Replacements | | |

| | | |

|d. Calibration | | |

|Equipment not subject to Defcon 23 or equivalent | | |

| | | |

|a. First Cost | | |

| | | |

|b. Maintenance | | |

| | | |

|c. Replacements | | |

| | | |

|d. Calibration | | |

| | | |

| | | |

| | | |

NOTE - Defcon 23 refers to patterns, moulds, jigs, tools and gauges owned by MoD whose acquisition is subject to MoD approval and are charged direct to contract.

Cont...

SCHEDULE 7

MISCELLANEOUS COSTS Continued

(Own make & Bought out)

3. SCRAP AND RECTIFICATION

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

|Cost of Work scrapped | | | | | |

| | | | | | |

|Cost of replacing scrapped work | | | | | |

|Cost of rectifying own work | | | | | |

| | | | | | |

|Cost of rectifying outside supplies | | | | | |

|Modifications accepted as Contractor's liability. | | | | | |

|(Not chargeable to MOD) | | | | | |

| | | | | | |

4. PACKING

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

|Normal: | | | |

|a. For despatch | | | |

| | | | |

|b. In works use | | | |

|Special (including Preservation, Identification, and | | | |

|Packaging) | | | |

| | | | |

Cont...

SCHEDULE 7

MISCELLANEOUS COSTS Continued

(Own make & Bought out)

5. SPARES PRICE LABELLING

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

|General stock Items | | | |

|For sale to HMG | | | |

| | | | |

| | | | |

6. CARRIAGE AND TRANSPORT COSTS

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

|Inwards | | | |

|Outwards: | | | |

| | | | |

|a. Own Transport | | | |

| | | | |

|b. Outside Transport | | | |

| | | | |

| | | | |

Cont...

SCHEDULE 7

MISCELLANEOUS COSTS Continued

(Own make & Bought out)

7. WORK OF A CAPITAL NATURE CARRIED OUT BY OWN WORKERS

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

|On own account | | | |

|With Capital Assistance | | | |

|(please state type) | | | |

| | | | |

a. State whether standard or non standard overhead rates employed in arriving at the total cost of work of a capital nature.

| |

b. If non standard give details

| |

8. ANY OTHER ITEMS

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

| | | | |

| | | | |

| | | | |

| | | | |

Cont...

SCHEDULE 7

MISCELLANEOUS COSTS Continued

(Own make & Bought out)

D = Direct Charge

X = Overhead Charge

L = Labour M = Material

| |L |M |REMARKS |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

SCHEDULE 8

MISCELLANEOUS CREDITS

D = Direct Charge

X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Containers and Packaging | | |

|Discounts : | | |

| | | |

|Cash: a. Subcontract and Direct Purchases | | |

| | | |

|b. Stock Material | | |

| | | |

|Trade | | |

| | | |

|Rebates: a. Quantity | | |

| | | |

|b. Others | | |

| | | |

|Others: | | |

| | | |

|Rent Received | | |

|Royalties Received | | |

|Sale of Prints | | |

|Sale of Scrap : | | |

| | | |

|a. Shop arisings, swarf, off cuts | | |

| | | |

|b. Obsolete or surplus stores/parts | | |

| | | |

|c. "Special" metals | | |

|Sale of sub standard parts etc. | | |

Cont...

SCHEDULE 8

MISCELLANEOUS CREDITS Continued

D = Direct Charge

X = Overhead Charge

| |D |REMARKS |

| |or | |

| |X | |

|Transport Recoveries | | |

|Use of other services (specify) | | |

| | | |

|Other Credits excluding overhead recoveries | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

| | | |

SCHEDULE 9

OVERHEAD RECOVERIES

Specify the various categories of overhead expenditure recovered from other divisions or group companies, the recovery basis and the method of treating such recoveries.

|EXPENDITURE CATEGORY |RECOVERY BASIS |CREDITED TO |

| | | |

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