University of Vermont

Cost Accounting Services 

Cost Accounting Standards Unlike Circumstances Guiding Principles

Generally, an unlike circumstance is defined as an activity/use of a cost item which is substantially greater in amount or different in purpose than the normal use of that cost type.

Specifically, in order to direct charge a cost on a federal sponsored agreement that would ordinarily be charged as an indirect cost, the following requirements must be met before consideration:
  • The sponsored agreement has an extraordinary need for the item or service that is beyond the level of services normally provided by departmental administration,
  • The cost can be specifically identified to the work conducted under the sponsored agreement and is appropriately documented,
  • The direct cost justification provides sufficient basis to classify an indirect cost as a direct cost within the context of the University’s cost accounting standards.

Last modified March 20 2012 03:21 PM