Summary

GAO reviewed the cost accounting systems currently in use in the federal government.

GAO found that: (1) most agencies designed their own cost systems, using financial accounting standards instead of cost accounting standards; (2) there were significant differences in cost measurement standards; (3) agencies relied on various forms of reconciliation to ensure the integrity of cost data; and (4) agencies used cost accounting systems most frequently to obtain data for managing activities or programs and budget formulation.