[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR31.202]

[Page 577]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES--Table of Contents
 
          Subpart 31.2--Contracts With Commercial Organizations
 
Sec. 31.202  Direct costs.

    (a) A direct cost is any cost that can be identified specifically 
with a particular final cost objective. No final cost objective shall 
have allocated to it as a direct cost any cost, if other costs incurred 
for the same purpose in like circumstances have been included in any 
indirect cost pool to be allocated to that or any other final cost 
objective. Costs identified specifically with the contract are direct 
costs of the contract and are to be charged directly to the contract. 
All costs specifically identified with other final cost objectives of 
the contractor are direct costs of those cost objectives and are not to 
be charged to the contract directly or indirectly.
    (b) For reasons of practicality, any direct cost of minor dollar 
amount may be treated as an indirect cost if the accounting treatment--
    (1) Is consistently applied to all final cost objectives; and
    (2) Produces substantially the same results as treating the cost as 
a direct cost.