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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 1 - Federal Acquisition Regulation |
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SubChapter E - General Contracting Requirements |
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Part 31 - Contract Cost Principles and Procedures |
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Subpart 31.2 - Contracts With Commercial Organizations |
§ 31.201-4 - Determining allocability.
Latest version.
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31.201-4 Determining allocability.
A cost is allocable if it is assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship. Subject to the foregoing, a cost is allocable to a Government contract if it -
(a) Is incurred specifically for the contract;
(b) Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or
(c) Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.