Definitions for "Allowable Cost"
Keywords:  omb, reimburse, principle, icular, gat
Costs included in the rate proposal must be allowable in accordance with OMB A-21. The tests of allowability are that costs must be reasonable, allocable to the recharge activity, and consistently treated.
Cost in a contract that is reasonable, meets accepted accounting principles, is defined in the Federal Acquisition Regulations, or is agreed to by contracting parties. Go to FAR 31.
Costs that the University incurs in carrying out a grant or contract, and is allowed to recover from the sponsoring agency. Under the terms of Federally-sponsored grants and contracts, the University will be allowed to recover t hose costs that are allowable in accordance with the US Office of Management and Budget (OMB) Circular A-21.
Charges for medical services or supplies provided by a hospital or physicians who qualify as covered expenses as stated in the health plan's certificate of coverage.