[Code of Federal Regulations]

[Title 48, Volume 7]

[Revised as of October 1, 2005]

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

[CITE: 48CFR9904.402-20]



[Page 356]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

     CHAPTER 99--COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL 

           PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

 

PART 9904_COST ACCOUNTING STANDARDS--Table of Contents

 

Sec. 9904.402-20  Purpose.



    The purpose of this standard is to require that each type of cost is 

allocated only once and on only one basis to any contract or other cost 

objective. The criteria for determining the allocation of costs to a 

product, contract, or other cost objective should be the same for all 

similar objectives. Adherence to these cost accounting concepts is 

necessary to guard against the overcharging of some cost objectives and 

to prevent double counting. Double counting occurs most commonly when 

cost items are allocated directly to a cost objective without 

eliminating like cost items from indirect cost pools which are allocated 

to that cost objective.