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

In government contracting, costs must not only comply with Generally Accepted Accounting Principles (GAAP) but also adhere to the Federal Acquisition Regulation (FAR) guidelines. This ensures that costs are reasonable, allocable, and necessary for contract performance. Additionally, contractors must maintain proper documentation to substantiate their costs, ensuring transparency and accountability in financial reporting. Non-compliance with these standards can lead to cost disallowance and potential penalties.