Allowable Cost
/əˈlaʊəbəl kɔst/
Definitions
- (n.) A cost recognized by a contract or regulatory framework as eligible for reimbursement or inclusion in pricing.
The contractor submitted documentation to justify the allowable costs under the government contract.
- (n.) An expense that complies with the terms of a grant, award, or governmental funding requirements for reimbursement.
Only allowable costs were reimbursed by the federal grant to ensure compliance with funding rules.
Forms
- allowable cost
- allowable costs
Related terms
See also
Commentary
Precise definition of allowable cost varies by regulatory context; careful review of governing contracts or regulations is essential for proper application.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.