[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR31.201-4]



[Page 601]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 31_CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents

 

          Subpart 31.2_Contracts With Commercial Organizations

 

Sec. 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.