[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: 48CFR9904.402-30]



[Page 356-357]

 

            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. 9904.402-30  Definitions.



    (a) The following are definitions of terms which are prominent in 

this standard. Other terms defined elsewhere in this part 99 shall have 

the meanings ascribed to them in those definitions unless paragraph (b) 

of this section requires otherwise.

    (1) Allocate means to assign an item of cost, or a group of items of 

cost, to one or more cost objectives. This term includes both direct 

assignment of cost and the reassignment of a share from an indirect cost 

pool.

    (2) Cost objective means a function, organizational subdivision, 

contract, or other work unit for which cost data are desired and for 

which provision is made to accumulate and measure the cost to processes, 

products, jobs, capitalized projects, etc.



[[Page 357]]



    (3) Direct cost means any cost which is identified specifically with 

a particular final cost objective. Direct costs are not limited to items 

which are incorporated in the end product as material or labor. Costs 

identified specifically with a contract are direct costs of that 

contract. All costs identified specifically with other final cost 

objectives of the contractor are direct costs of those cost objectives.

    (4) Final cost objective means a cost objective which has allocated 

to it both direct and indirect costs, and in the contractor's 

accumulation system, is one of the final accumulation points.

    (5) Indirect cost means any cost not directly identified with a 

single final cost objective, but identified with two or more final cost 

objectives or with at least one intermediate cost objective.

    (6) Indirect cost pool means a grouping of incurred costs identified 

with two or more cost objectives but not specifically identified with 

any final cost objective.

    (b) The following modifications of terms defined elsewhere in this 

chapter 99 are applicable to this Standard: None.