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Allowable vs. Unallowable Expenses for Government Contractors

Understanding allowable vs. unallowable expenses is critical for government contractors. Misclassified costs can lead to audit issues, inaccurate rates, and lost profits. This blog breaks down FAR Part 31 cost principles, clarifies the difference between overhead and G&A, and shares best practices to keep your accounting compliant, transparent, and audit-ready.

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