§31.201-4. Determining allocability.
48 C.F.R. § 31.201-4
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—
Is incurred specifically for the contract;
Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or
Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.
Notes, amendments, and revision history
Authority
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
Source
Source: 48 FR 42301, Sept. 19, 1983, unless otherwise noted.