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87 costs refer to expenses governed by OMB Circular 87, which outlines what constitutes allowable costs for federal funding. This framework is essential for state and local entities to ensure they meet federal requirements while managing financial resources. You can find more detailed guidance on this in ' GUIDE FOR STTE, LOCL ND INDIN TRIBL ...' to enhance your fiscal strategies.

The five common indirect costs include administration, facilities maintenance, utilities, employee benefits, and depreciation. These costs support the overall operation of a project yet are not directly attributable to it. Addressing indirect costs efficiently can result in better financial outcomes. Explore 'A GUIDE FOR STATE, LOCAL AND INDIAN TRIBAL ...' for a deeper look at managing these expenses effectively.

Direct costs are easily traced to a specific project, while indirect costs are expenses not directly linked to a single project, like utilities and administrative salaries. Both types are important in budgeting and financial reporting, and knowing their difference can enhance your project management strategies. Our resource, 'A GUIDE FOR STATE, LOCAL AND INDIAN TRIBAL ...', breaks down these concepts for better understanding.

OMB Circular A-87 provides detailed guidelines on how to allocate costs to federal awards. It outlines principles for determining allowable costs and helps state and local governments avoid misallocating funds. By including A-87 in your financial planning, you can ensure compliance and efficiency in usage of your resources. For more information, check out 'A GUIDE FOR STATE, LOCAL AND INDIAN TRIBAL ...' which details these principles.

Direct costs are expenses that can be specifically attributed to a project or activity. They include items like salaries for personnel working directly on a project, as well as materials and supplies. Understanding direct costs is crucial in managing budgets effectively. For a complete overview, refer to 'A GUIDE FOR STATE, LOCAL AND INDIAN TRIBAL ...' to gain insights into managing these costs effectively.

The process of assigning a cost, or a group of costs, to one or more cost objective(s), in reasonable proportion to the benefit provided or other equitable relationship.

Cost allocation is the distribution of one cost across multiple entities, business units, or cost centers. An example is when health insurance premiums are paid by the main corporate office but allocated to different branches or departments.

Business owners use cost allocation to assign costs to specific cost objects....3 types of costs Direct costs. A direct cost is anything that your business can directly connect to a cost object. ... Indirect costs. ... Overhead costs.

OMB is also responsible for assigning Federal agencies to serve as cognizant for purposes of review and approval of cost allocation plans and indirect cost rates of states and certain local and Indian tribal governments. Except as provided by statute, any exceptions to the Circular are subject to OMB approval.