Business, Legal & Accounting Glossary

Definition: Allowability


What is the dictionary definition of Allowability?

Dictionary Definition

The state of being allowable; legitimacy; permissibleness.

Full Definition of Allowability

Characteristic of a cost that permits its inclusion in a cost-plus type contract, and depends on:

  • its reasonableness
  • its allocability
  • provisions of GAAP.
  • practices appropriate under the circumstances, and
  • the terms of the contract.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Allowability. Payroll & Accounting Heaven Ltd.
August 16, 2022
Chicago Manual of Style (CMS):
Allowability. Payroll & Accounting Heaven Ltd. (accessed: August 16, 2022).
American Psychological Association (APA):
Allowability. Retrieved August 16, 2022
, from website:

Definition Sources

Definitions for Allowability are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th December, 2019 | 0 Views.