Is a reasonable cost an allowable cost?
Just so, are all reasonable costs allowable?
(a)A cost is allowable only when the cost complies with all of the following requirements: (1) Reasonableness. (2) Allocability. (3) Standards promulgated by the CAS Board, if applicable, otherwise, generally accepted accounting principles and practices appropriate to the circumstances.
Secondly, what are allowable costs for federal contracts? Allowable costs are defined in the FAR as costs that are reasonable and allocable to the contract, per the terms of the contract at issue, Cost Accounting Standards and the FAR. (See FAR 31.201-2). Although this is a broad definition, FAR Section 31 specifically addresses many types of costs a contractor may incur.
Secondly, what is allowable cost?
Definition: Allowable costs are expenses that are included in a contracted service or product. Usually unallowable costs are referred to as non-covered or non-contracted costs. These are the costs that are over and above what the contract specifies.
Are bank fees allowable under far?
Interest and other financial costs FAR 31.205-20 Interest expenses are generally unallowable. Examples of interest expenses are interest on loans and lines of credit. Financial costs also are generally unallowable and include things such as renewal fees on lines of credit and annual fees on credit cards.