Which of the Following Is Not One of the Criteria

question 3

Multiple Choice

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.

---

Definitions:

Agency

The service an agent performs on behalf of a principal.

Breach Duties

The failure to perform obligations or duties as prescribed in a contract or by law.

Credit Standing

An assessment or evaluation of an individual's or entity's ability to repay obligations or debts.

Sole Proprietors

Individuals who own and operate their business by themselves, having complete control and bearing ultimate legal and financial responsibility.