Cost Standards Sample Clauses

The Cost Standards clause establishes the rules and criteria for determining which costs are allowable, reasonable, and allocable under a contract. Typically, it references established guidelines such as the Federal Acquisition Regulation (FAR) or other industry standards to ensure consistency in cost accounting. This clause applies to expenses incurred during the performance of the contract, such as labor, materials, and overhead, and may require documentation or justification for certain charges. Its core function is to promote transparency and fairness in cost reimbursement, preventing disputes over what expenses can be charged to the contract.