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Cost Accounting Services

Cost Accounting Standards Cost Accounting Principles for Benefit Rates

The cost accounting principles for determining and applying benefit rates are:

  • Benefit costs must be allowable, allocable, reasonable and treated consistently
  • Benefit costs assigned to each benefit rate (numerator) are actual costs or are allocated based on salaries/wages (base) of employees receiving the benefits
  • Benefit costs related to salaries or wages treated as direct costs on sponsored agreements must also be treated as direct costs
  • Benefit costs related to salaries or wages treated as F&A costs must also be treated as F&A costs
  • Unallowable costs such as tuition remission for spouse and dependents are not included in the benefit costs of the rates.
  • Health insurance for postdoc fellows/trainees are not included in any of the benefit rates.
  • Vacation, holiday, sick leave pay and other paid absences are included in salaries and wages (base)

These cost principles are based on the Federal Government's OMB Circular A-21 Cost Principles for Higher Education. 

Last modified May 08 2012 12:57 PM

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