[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: 48CFR9904.405-20]



[Page 368]

 

            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. 9904.405-20  Purpose.



    (a) The purpose of this Cost Accounting Standard is to facilitate 

the negotiation, audit, administration and settlement of contracts by 

establishing guidelines covering:

    (1) Identification of costs specifically described as unallowable, 

at the time such costs first become defined or authoritatively 

designated as unallowable, and

    (2) The cost accounting treatment to be accorded such identified 

unallowable costs in order to promote the consistent application of 

sound cost accounting principles covering all incurred costs.



The Standard is predicated on the proposition that costs incurred in 

carrying on the activities of an enterprise--regardless of the 

allowability of such costs under Government contracts--are allocable to 

the cost objectives with which they are identified on the basis of their 

beneficial or causal relationships.

    (b) This Standard does not govern the allowability of costs. This is 

a function of the appropriate procurement or reviewing authority.