Version: September 2014 Thru FAC 2005-76 FAR Cost Principles Guide (Chronology of Cost Principle Revisions Issued in Federal Acquisition Circulars (FACs) Since 1984) 55 word “subdivisions” from the first sentence of paragraph (o)(5)and added the word “paragraph” in its place.
http://www.dcaa.mil/far_cost_principles_guide.pdf
A cost that can be assigned or charged to one or more activities or items (cost objects) on the basis of benefits received or other such equitable or logical association, although a direct (causal) relationship may not be established.
http://www.businessdictionary.com/definition/allocable-cost.html
Now let's change the example slightly. Assume the contract states that the price of a coach ticket will be reimbursed. The coach tickets are still considered allowable costs because they will be reimbursed in full. The first class tickets, on the other hand, will only be partially considered allowable expenses since the government will only reimburse the cost of the coach tickets.
http://www.myaccountingcourse.com/accounting-dictionary/allowable-costs
Version: September 2014 Thru FAC 2005-76 FAR Cost Principles Guide (Chronology of Cost Principle Revisions Issued in Federal Acquisition Circulars (FACs) Since 1984) 59 intended to be applied consistently for all employees under similar circumstances in the future.
http://www.dcaa.mil/far_cost_principles_guide.pdf
Allowable costs are expenses that are included in a contracted service or product. Usually allowable costs are present in contracts between two companies. Think about allowable costs begs the question, are there unallowable costs?
http://www.myaccountingcourse.com/accounting-dictionary/allowable-costs
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. It might be easier to look at an example. Let's assume that your company is hired by the government to clean up an oil spill.
http://www.myaccountingcourse.com/accounting-dictionary/allowable-costs
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http://www.businessdictionary.com/definition/allocable-cost.html
Version: September 2014 Thru FAC 2005-76 FAR Cost Principles Guide (Chronology of Cost Principle Revisions Issued in Federal Acquisition Circulars (FACs) Since 1984) 88 demonstrates that an equivalent amount of the costs incurred by the employee organization would be allowable if directly incurred by the contractor.
http://www.dcaa.mil/far_cost_principles_guide.pdf
allowable costs, charges for health care services and/or supplies for which insurance benefits are available. In general, costs of services not considered to be reasonable or necessary to the proper provision of health services are excluded from allowable costs. Allowable costs vary across insurance companies.
http://medical-dictionary.thefreedictionary.com/allowable+costs
Version: September 2014 Thru FAC 2005-76 FAR Cost Principles Guide (Chronology of Cost Principle Revisions Issued in Federal Acquisition Circulars (FACs) Since 1984) 47 reasonable if each of the allowable elements making up the employee's compensation package is reasonable.
http://www.dcaa.mil/far_cost_principles_guide.pdf
definition of allowable cost
Allowable costs are expenses that are included in a contracted service or product.