FAR 31.201-4 Determining allocability
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 31.201-4
- Type
- Subsection
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
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) Is incurred specifically for the contract;
(b) Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or
(c) Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.
Quick answers
What is FAR 31.201-4?
FAR 31.201-4 is a subsection of the Federal Acquisition Regulation, titled "Determining allocability".
Are changes to FAR 31.201-4 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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