FAR 31.201-4 — Determining allocability
Regulatory text. Not legal advice.
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)
(a) Is incurred specifically for the contract;
(b)
(b) Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or
(c)
(c) Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.
Source: eCFR • Pulled 2026-04-16