John,

Definition from " Contract Management: Post Award", Stanley N. Sherman,
copyright 1987 as follows:

"ALLOCABLE COST:  A cost is allocable if it is assignable or chargeable
to one or more cost objectives in accordance with relative benefits
received or other equitable relationships defined or agreed to between
contractual parties."

Another source for contract definitions is Naval Postgraduate School, my
p.o.c.  is Professor Mark Stone.  Many of the graduate students have
worked on thesis trying to clarify terms used in federal procurement.
Mark's e-mail address is:

xxxxxx@ahenobarbus.com

Hope this helps.

Chuck Willis
Grant & Contract Administrator
ODU Research Foundation
Phone: (757) 683-4293 Ext. 613
Fax: (757) 683-5290
E-mail: xxxxxx@pobox.hprf.odu.edu