Describe What Is Meant by the Direct Costs of a Program

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The Answer is The direct costs of a program are those that can be identified as having been incurred specifically for the purposes of the program. It is important to carefully distinguish direct costs since a government can usually recover the full amount of direct costs of a program that receives federal funding, but only if the costs are identified in the manner set forth in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Indirect costs may only be partially recoverable. Also, knowing the cost of providing fire protection can be highly useful in determining whether to contract with a private firm for fire protection, as have some innovative municipalities.

Describe What Is Meant by the Direct Costs of a Program

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Describe What Is Meant by the Direct Costs of a Program

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