Code of Federal Regulations · Section

§ 31.201-4 — 31.201-4 Determining Allocability

48 C.F.R. § 31.201-4

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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.

48 C.F.R. § 31.201-3 48 C.F.R. § 31.201-5

Authorizing Statute