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9904.416-40 Fundamental requirement.

48 CFR 9904.416-40

Citation48 CFR 9904.416-40
CorpusDaily eCFR
Displayed edition2026-09-01
Last updated2026-09-01

9904.416-40 Fundamental requirement.

(a) The amount of insurance cost to be assigned to a cost accounting period is the projected average loss for that period plus insurance administration expenses in that period.

(b) The allocation of insurance costs to cost objectives shall be based on the beneficial or casual relationship between the insurance costs and the benefiting or causing cost objectives.