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Allowable, Allocable & Reasonable Costs

Costs charged to extramural projects should be in accordance with Subpart E – Cost Principles at 2 CFR 200

To be chargeable to an award, costs must be:

  • Allowable: UG 200.403: Permitted by federal or governmental regulations and/or the sponsor’s award terms and conditions,
    and consistently treated.
  • Reasonable: UG 200.404: Such that a “prudent person” would have paid the stated amount for the goods and services. “Prudent person” is generally defined as a person of “ordinary prudence and intelligence”.
  • Allocable: UG 200.405: Necessary to carry out the scope of, and provide a benefit to the project.


Additional information can be found in the Extramural Award Cost Guidelines.