Determing Allocability

From Knowledge base

Allowable or Unallowable:

Source:

Determing Allocability[1]

Allocable if assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship.

Allocable costs may:

  • Be incurred specifically for the contract, or
  • Benefit both a contract and other work, and the costs can be distributed in a reasonable and equitable proportion to the benefits received, or
  • Are necessary to the overall operation of the business.

References and Notes

  1. FAR 31.201-4