allocable cost
OMB Circular A-21, Section C, states that The recipient institution is responsible for ensuring that costs charged to a sponsored research agreement are allowable, allocable, and reasonable .... Each financial transaction charged against a sponsored research award is evaluated against these three concepts. Legislative Lobbying Costs - These costs are almost always unallowable. Contractor/grantee must maintain adequate records to demonstrate that the certification of costs as being allowable or unallowable (see 42.703-2) complies with the requirements of 31.205-22. 31.205-27. Advertising Costs - Advertisingmeans the use of media to promote the sale of products and/or serves. 31.205-3. Bad Debts Costs - Losses arising from uncollectible accounts receivable and other claims, and any directly associated costs such as collection and legal costs. Applies to all Financial Assistance Recipients. §200.405 Allocable costs. (a) A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. This standard is met if the cost: Allowable, Allocable, and Reasonable Costs. The concepts of allowability, allocability, and reasonableness of costs address directly the legitimacy of a cost charged against a specific sponsored research award. A primary responsibility of the Office of Research is to insure that all costs charged to the sponsored research award are allowable and allocable. A determination of allowability and allocability for a given cost is based on the specific guidelines of the sponsoring agency and according to federal cost principles. (c) Any cost allocable to a particular Federal award under the principles provided for in this part may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions imposed by Federal statutes, regulations, or terms and conditions of the Federal awards, or for other reasons. allocable cost. A cost that can be assigned or charged to one or more activities or items (cost objects) on the basis of benefits received or other such equitable or logical association, although a direct (causal) relationship may not be established. Also referred to as allocability. You Also Might Like... Allowable, Allocable, Reasonable Costs: Many, and perhaps the most familiar, ethical issues concern the expenditure and proper accounting of project costs. Administrative staff need to be consistently careful that costs are allowable under sponsor policies, properly allocated to the correct project, and are considered reasonable. Cost Principles for Educational Institutions (05/10/2004) issued by the U.S. Office of Management and Budget.). Cost that (a) is incurred specifically for the contract; (b) benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or (c) is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown. Source:
A cost that can be assigned or charged to one or more activities or items (cost objects) on the basis of benefits received or other such equitable or logical association, although a direct (causal) relationship may not be established.