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.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the asset's wear and tear, deterioration, or obsolescence.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services the company has received but not yet paid for.

Restructuring Charges

Expenses associated with reorganizing a company, which may include layoffs, plant closures, or other major operational changes.

Continuing Operations

The segments or parts of a business expected to continue operating and contributing to earnings into the foreseeable future.