To Determine Which Costs Are Allowable for Charging to a Federal

question 16

True/False

To determine which costs are allowable for charging to a federal assistance program, accountants and auditors refer to the GASB cost circular.

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Definitions:

Substitution Possibilities

The extent to which alternative products or services can replace each other in satisfying consumers' needs or preferences.

Cross-Market Competition

Competition that occurs between businesses operating in different markets or sectors but competing for the same customer base.

Pure Monopoly

A market structure where a single seller exclusively controls the supply of a product or service with no close substitutes.

Price Protection

A sales policy or agreement guaranteeing a buyer a refund of the difference if the price of the purchased item drops within a certain period after the purchase.