Which of the following statements regarding costs under federal awards is not True?
A) Only items of cost specifically mentioned in a grant, contract, or other agreement document are allowable.
B) Several costs are allowable under highly restrictive conditions and generally require the explicit approval of the grantor agency.
C) For major not-for-profit organizations and institutions of higher learning, indirect costs must be classified within two broad categories termed "facilities" and "administration."
D) Direct costs are those that can be identified specifically with a particular cost objective.

Question

Quizplus · Accepted Answer

The statement that only items of cost specifically mentioned in a grant, contract, or other agreement document are allowable is not true. Costs do not need to be explicitly mentioned in the agreement to be allowable; they need to be necessary, reasonable, and allocable to the project according to federal regulations and the terms of the agreement.

Which of the Following Statements Regarding Costs Under Federal Awards