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Development of direct labor bases and impact of overtime premium.

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Even if a contract is not covered by the Cost Accounting Standards (CAS), the FAR will compel any contractor subject to these FAR principals to account for unallowable costs in accordance with CAS 405.

In essence, the government is saying that when FAR tells you that a specific Cost Accounting Standard, or some part of the CAS applies, then it applies, even though you may be exempt from CAS as a small business. It is what it is!



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