48 CFR § 9904.416-40 - 9904.416-40 Fundamental requirement.

---
identifier: "/us/cfr/t48/s9904.416-40"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 9904.416-40 - 9904.416-40   Fundamental requirement."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "9904.416-40"
section_name: "9904.416-40   Fundamental requirement."
chapter_number: 99
chapter_name: "COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET"
subchapter_number: "B"
subchapter_name: "PROCUREMENT PRACTICES AND COST ACCOUNTING STANDARDS"
part_number: "9904"
part_name: "COST ACCOUNTING STANDARDS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Pub. L. 100-679, 102 Stat. 4056, 41 U.S.C. 422."
regulatory_source: "57 FR 14153, Apr. 17, 1992, unless otherwise noted."
cfr_part: "9904"
---


# 9904.416-40 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.