[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: 48CFR31.201-1]

[Page 574-575]
 
            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. 31.201-1  Composition of total cost.

    (a) The total cost of a contract is the sum of the direct and 
indirect costs allocable to the contract, incurred or to be incurred, 
less any allocable credits, plus any allocable cost of money pursuant to 
31.205-10. In ascertaining what constitutes a cost, any generally 
accepted method of determining or estimating costs that is equitable and 
is consistently applied may be used, including standard costs properly 
adjusted for applicable variances. See 31.201-2(b) and (c) for Cost 
Accounting Standards (CAS) requirements.
    (b) While the total cost of a contract includes all costs properly 
allocable to the contract, the allowable costs to the

[[Page 575]]

Government are limited to those allocable costs which are allowable 
pursuant to part 31 and applicable agency supplements.

[48 FR 42301, Sept. 19, 1983, as amended at 59 FR 67045, Dec. 28, 1994]