Allocable Cost [Energy] Law and Legal Definition

According to 10 CFR 1009.2 (a) [Title 10 Energy; Chapter X Department of Energy (General Provisions); Part 1009 General Policy for Pricing and Charging for Materials and Services Sold by DOE], Allocable Cost means “a cost allocable to a particular cost objective (i.e., a specific function, project, process, or organization) if the costs incurred are chargeable or assignable to such cost objectives in accordance with the relative benefits received or other equitable relationships. Subject to the foregoing, a cost is allocable if:

(1) It is incurred solely for materials or services sold;

(2) It benefits both the customer and the Department in proportions that can be approximated through use of reasonable methods, or

(3) It is necessary to the overall operation of the Department and is deemed to be assignable in part to materials or services sold.”