Which of the following is not one of the criteria for an allowable cost under a federal grant?
A) A cost that is necessary and reasonable for the performance of the federal award and allocable thereto under the OMB cost principles.
B) A cost that conforms to any limitations or exclusions set forth in the OMB cost principles or in the federal award as to types or amount of cost items.
C) A cost that has been approved by the FASB or GASB as an allowable cost.
D) A cost that is adequately documented.

Question

Quizplus · Accepted Answer

The FASB (Financial Accounting Standards Board) and GASB (Governmental Accounting Standards Board) do not approve allowable costs under federal grants. Allowable costs must meet the criteria of being necessary, reasonable, allocable, and adequately documented, as well as conforming to any limitations or exclusions set forth in the OMB cost principles or in the federal award.

Which of the Following Is Not One of the Criteria