The facilities capital cost of money refers to the cost associated with financing facilities capital. This term is defined in federal regulations and represents the cost of using money as part of the overall expenses related to facilities capital. Essentially, it encompasses the financial costs incurred when investing in physical assets such as buildings and equipment, which are necessary for business operations.
This term is primarily used in federal contracting and cost accounting practices. It is relevant in various legal areas, including government contracts and procurement. Understanding the facilities capital cost of money is important for contractors who must comply with federal regulations, particularly when preparing bids or cost proposals. Users can manage their compliance with the help of legal templates offered by US Legal Forms, which are crafted by experienced attorneys.
Here are a couple of examples of abatement:
For instance, a government contractor who builds a new facility may include the facilities capital cost of money in their pricing structure. This cost reflects the interest on loans taken to finance the construction of the facility. (Hypothetical example).
Key regulations include:
| Term | Definition | Key Differences |
|---|---|---|
| Cost of Money | The financial cost associated with borrowing funds. | Facilities capital cost of money is specifically related to physical assets. |
| Facilities Capital | Physical assets used in business operations. | Facilities capital cost of money refers to the financing aspect of these assets. |
If you are involved in federal contracting or managing facilities capital, ensure you understand how to calculate and report the facilities capital cost of money accurately. You can explore US Legal Forms for templates that can assist you in preparing necessary documents. If your situation is complex, consider seeking professional legal advice.
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It is the cost associated with financing physical assets necessary for business operations.