Final answer:
Cost Accounting Standards (CAS) apply to federal contracts that generally exceed a certain financial threshold, which often is around $7.5 million, but it is subject to change and should be verified with current federal procurement regulations.
Step-by-step explanation:
The Cost Accounting Standards (CAS) are a set of 19 standards and rules promulgated by the United States government for use in determining costs on negotiated procurements. CAS must be applied to federal contracts that exceed a certain financial threshold. This threshold is subject to change, and it is important to consult current federal procurement regulations or the Defense Contract Audit Agency (DCAA) for the most up-to-date threshold. Generally, CAS applies to contractors who receive a single contract of $7.5 million or more, provided that the contractor has also received at least one contract exceeding $50,000 within the past cost accounting period. Smaller contracts may also be subject to CAS if they are part of a larger series of contracts that have been awarded under similar circumstances or if they are federally funded.