ALLOCABLE COSTS

{
  "id": "MLC-T-ENV-001095",
  "term": "ALLOCABLE COSTS",
  "field": "Environment",
  "definition": "1. A cost is allowable to a particular cost objective if the goods or services involved are chargeable or assignable to such cost objective in accordance with relative benefits received.\n\n2. All activities which benefit from the governmental unit's indirect cost, including unallowable activities and services donated to the governmental unit by third parties, will receive and appropriate allocation of indirect costs.\n\n3. Any cost allowable to a particular Federal award or cost objective under the principles provided for in OMB Circular A 87 may not be charged to other Federal awards to overcome fund deficiencies, to avoid restriction imposed by law or terms of the Federal awards, or for other reasons. However, this prohibition would not preclude governmental units from shifting costs that are allowable under two or more awards in accordance with existing program agreements.\n\n4. Where an accumulation of indirect costs will ultimately result in charges to a Federal award, a cost allocation plan will be required as described in Attachments C, D, and E of (OMB Circular A 87).",
  "subject": "Laws, regulations and executive orders",
  "references": [
    "Grants and Debarment Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/allocable-costs/"
}