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The beneficial or causal relationship test is the accounting principle that all government contractors must follow when allocating indirect costs. [Perry v. Martin Marietta Corp., 47 F.3d 1134 (Fed. Cir. 1995)].
Pursuant to 48 CFR 9904.418-40 (c), pooled costs should be allocated to cost objectives in reasonable proportion to the beneficial or causal relationship of the pooled costs to cost objectives.