48 CFR §1830.7002-3

1. (a)The calculation of the representative investment requires consideration of the rate or expenditure pattern of the costs to construct, fabricate, or develop a capital asset.
2. (b)If the majority of the costs were incurred toward the beginning, middle, or end of the cost accounting period, the contractor shall either:
   1. (1)Determine a representative investment for the cost accounting period by calculating the average of the month-end balances for that cost accounting period; or
   2. (2)Treat month-end balances as individual representative investments.
3. (c)If the costs were incurred in a fairly uniform expenditure pattern throughout the construction, fabrication, or development period, the contractor may either:
   1. (1)Determine a representative investment for the cost accounting period by averaging the beginning and ending balances of the construction, fabrication, or development cost account for the cost accounting period; or
   2. (2)Treat month-end balances as individual representative investments.
4. (d)The method chosen by the contractor to determine the representative investment amount may be different for each capital asset being constructed, fabricated, or developed, provided the method fits the expenditure pattern of the costs incurred.