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Unallowable Cost

Cost that cannot be charged to government contracts.

FAR 31.205

Definition

Unallowable costs cannot be charged to or reimbursed under government contracts. FAR Part 31 lists specific unallowable costs including entertainment, alcoholic beverages, bad debts, contributions, fines, lobbying, and advertising. Contractors must track and exclude these costs.

Official Source

FAR 31.205

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