What does allowability mean?

allowability meaning in Law Dictionary

cost this is certainly reasonable, alloccabile, meets the GAAP, and suits contract terms.

allowability meaning in Business Dictionary

Characteristic of a cost that allows its addition in a cost-plus kind contract, and depends on (1) its reasonableness, (2) its allocability, (3) conditions of GAAP, (4) techniques appropriate in situations, and (5) terms of the contract.