Materials and Contracts. (i) Allowable costs of direct materials shall be determined by Princeton University. Reasonable and allocable material handling costs may be included in the charge for material to the extent they are clearly excluded from the hourly rate. Material handling costs are comprised of indirect costs, including, when appropriate, general administrative expense allocated to direct materials in accordance with the Contractor's usual accounting practices. The Contractor shall be reimbursed for items and services purchased directly for the Contract only when cash, checks, or other forms of actual payment have been made for such purchased items or services. Direct materials, as used in this Clause, are those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product.
