Question

In Government contracting, one criterion for cost allowability is that the contractor's costs must comply with Generally Accepted Accounting Principles (GAAP) and _________________.

a. ISO 9001 Principles
b. Government Cost Accounting Standards (CAS)
c. Lean Manufacturing Principles
d. Cost as an Independent Variable (CAIV) Principles

Answer 1

b. Government Cost Accounting Standards (CAS)

Step-by-step explanation:

The process of government contracting is usually a very legal activity that requires contractors to be well qualified so as to receive the government contracts. There are certain principles that are required to be met on cost allowability, the principles include the Generally Accepted Accounting Principles (GAAP) and the nineteen principles of Government Cost Accounting Standards (CAS). These two principles are closely inspected by the government to make sure that the contractors adhere to them. The correct answer is B.