StacksVerified U.S. regulatory reference

48 CFR §31.201-4

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
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—
  1. (a)Is incurred specifically for the contract;
  2. (b)Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or
  3. (c)Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.