This course will provide an overview of the cost principles included under Federal Acquisition Regulation (FAR) 31.2, Contracts with Commercial Organizations. The course will detail the specific FAR criteria used in determining whether costs are allowable, allocable, reasonable and meet other requirements so that the costs may be included in proposals or invoices submitted to the federal government. Specifically, the course will cover the following main topics:

• Recognize the criteria used in determining that a cost is allowable under FAR 31.2;
• Understand key aspects of cost principles associated with particular types of costs under FAR 31.205; 
• Identify the role of the accounting system and internal controls in identifying and segregating unallowable costs, and the need to maintain records that support the allowability of amounts proposed or billed under government contracts;  
• Recognize the applicability of penalties associated with failing to properly account for unallowable costs.