2-34.8 Reasonableness A cost is reasonable if it is a type of cost and amount that does not exceed what a prudent person would incur conducting competitive business. In determining the reasonableness of a specific cost, consider: Whether it is a type of cost generally recognized as ordinary and necessary for conducting business or performing the contract. Restraints imposed by generally accepted business practices, arm’s-length bargaining, and Federal and state laws and regulations. What a prudent business person, considering his or her responsibilities to owners, employees, customers, the Postal Service, and the public at large, would do under the circumstances. Any deviations from the supplier’s established business practices that may unjustifiably increase costs.