Composition of Total Costs
Allowable or Unallowable:
Source:
The Total Cost of a Contract is:
- Sum of the Direct and Indirect costs allocable to the contract, incurred or to be incurred,
- Plus and allocable cost of money.
Methods for Compiling Cost of a Contract
- Any generally accepted method of determining or estimating costs that is equitable and is consistently applied may be used.
Specific Costs
- Total cost of a contract includes all costs properly allocable to the contract.
- Allowable costs to the Government is limited to the allocable costs that are allowed under this FAR section, FAR 31 - Cost Principles, and applicable agency supplements.[1]
References and Notes
- ↑ FAR 31.201-1