Allocable Cost

{
  "id": "MLC-T-ENV-001094",
  "term": "Allocable Cost",
  "field": "Environment",
  "definition": "Cost which is attributable to a particular cost objective, such as a grant, project, service, or other activity, in accordance with the relative benefits received. A cost is allocable to a Government award if it is treated consistently with other costs incurred for the same purpose in like circumstances and if it: (1) Is incurred specifically for the award; (2) Benefits both the award and other work and can be distributed in reasonable proportion to the benefits received; or (3) Is necessary to the overall operation of the organization, although a direct relationship to any particular cost objective cannot be shown. Allowable cost means those project costs that are: eligible, reasonable, allocable to the project, and necessary to the operation of the organization or the performance of the award as provided in the appropriate Federal cost principles, in most cases 2 CFR part 200 Subpart E - Cost Principles, and approved by EPA in the assistance agreement. Applicant means any group of people that files an application for a TAG.",
  "references": [
    "40 CFR 35.4270 (CFR 2018)"
  ],
  "url": "https://mlchart.com/terminology/environment/allocable-cost/"
}