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DEFM424 - Overhead Management of Defense Contracts

Course Details

Course Code: DEFM424 Course ID: 4642 Credit Hours: 3 Level: Undergraduate

This course provides an understanding of industry overhead costs and the costs’ impact on seller pricing/business strategies under various acquisition environments with differing contract types. Attendees will understand the development and application of overhead rates used in contract formation, administration, and closeout. The course-integrating case study provides hands-on application of the overhead-rate process in which attendees determine their own final overhead rates.

Course Schedule

Registration Dates Course Dates Session Weeks
07/27/21 - 12/31/21 01/03/22 - 02/27/22 Winter 2022 Session B 8 Week session
10/26/21 - 04/01/22 04/04/22 - 05/29/22 Spring 2022 Session B 8 Week session

Current Syllabi

After successfully completing this course, students will fulfill the following Learning Objectives (LO):

LO 1. Explain Indirect costs, direct costs, allocation base, pool, G&A, fringe benefits, intermediate pools, and under/over applied overhead.

LO 2. Explain the elements of cost in overhead.

LO 3. Explain the relationship between labor rates and the business base.

LO 4. Explain the FAR requirements for forward pricing rates, billing rates, and final overhead rates.

LO 5. Explain the activity based costing process.

LO 6. Explain the difference between capitalizing and expensing assets.

LO 7. Explain the general treatment of unallowable costs on billings, claims, and application of penalties.

LO 8. Explain the concept and treatment of directly associated costs.

Please see the Student Handbook to reference the University’s grading scale.

NameGrade %
Forums 32.00 %
Wk 1 Forum Discussion 4.00 %
Wk 2 Forum Discussion 4.00 %
Wk 3 Forum Discussion 4.00 %
Wk 4 Forum Discussion 4.00 %
Wk 5 Forum Discussion 4.00 %
Wk 6 Forum Discussion 4.00 %
Wk 7 Forum Discussion 4.00 %
Wk 8 Forum Discussion 4.00 %
Paper Assignments 30.00 %
Week Two: Short Paper 10.00 %
Week Three: Short Paper 10.00 %
Week Four: Short Paper 10.00 %
Term Project Outlines 4.00 %
Week Five: Term Project- Abstract and Annotated Bibliography 4.00 %
Term Project Paper 34.00 %
Week Seven: Term Project Paper 34.00 %

Additional Resources:

Federal Acquisition Regulation (FAR) located at

Universal Commercial Code (UCC) located at

In the Course Materials folder there are PowerPoint presentations, leadership articles, and up to date APA handouts.

Netlibrary—you can read directly online. Note, printing is one page at a time and, depending on number of users at any one time, you may be locked out.


In addition to the required course texts the following public domain Websites are useful. Please abide by the university’s academic honesty policy when using Internet sources as well. Note web site addresses are subject to change.

Site Name

Website URL/Address

The OWL at Purdue

APA Style Homepage

Book Title:Various resources from the APUS Library & the Open Web are used. Please visit to locate the course eReserve.

Previous Syllabi

Not current for future courses.