Consistency in Allocating Costs Incurred for the Same Purposes -

200.2- Consistency in Allocating Costs Incurred for the Same Purposes - (Rev. 2, 08-30-02) A1-1522, B1-4522 The purpose of this standard is to require that each type of cost is allocated only once and on only one basis to our contract or other cost objective. Thus, no cost may be allocated to a final cost objective as an indirect cost if other costs incurred for the same purpose and in like circumstances have been included as a direct cost of that same or any other cost objective. Conversely, no cost may be allocated to an objective as a direct cost if other costs incurred for the same purpose have been included in any indirect cost pool to be allocated to the same or any other cost objective. The requirement of the standard, though stated in terms of costs incurred, is equally applicable to estimates of costs as used in the contractors' budget preparation. For the sake of practicality, minor items of direct costs may be treated as indirect costs, provided that the treatment is consistently applied to all final cost objectives and provided that the results are substantially the same as would have been produced if each such cost had been treated as a direct cost. This materiality provision is an integral part of this standard.