Determing Allocability

Allowable or Unallowable:

Source:

Determing Allocability

Allocable if assignable or chargeable to one or more cost objectives on the basis of relative benefits received or other equitable relationship.

Allocable costs may:

• Be incurred specifically for the contract, or
• Benefit both a contract and other work, and the costs can be distributed in a reasonable and equitable proportion to the benefits received, or
• Are necessary to the overall operation of the business.