An example of an allowable cost considered by U.S government contract is ________.
A) costs of economy-class airfares
B) costs of lobbying activities
C) costs of alcoholic beverages
D) costs of vacation for executives

Question

Quizplus · Accepted Answer

Costs of economy-class airfares are allowable expenses for U.S. government contracts since they are necessary and reasonable expenses incurred for the performance of the contract. On the other hand, costs of lobbying activities, alcoholic beverages, and vacation for executives are not allowable expenses as they are not necessary and reasonable expenses directly related to the performance of the contract.

An Example of an Allowable Cost Considered by U