Is There More Than One Way to Calculate an Indirect Cost Rate?
The Office of Management and Budget Circular A-122, Cost Principles for Nonprofit Organizations, describes the method of developing a federal indirect cost rate, using these same principles. However, even within these guidelines, indirect cost rates for the same organization may vary from federal agency to federal agency. Organizations may allocate indirect costs based on how many people are served in each of their programs, how large each of their sites is, or other logical methods.
Related Questions
- How do I know what indirect cost rate (also known as the Facilities and Administrative [ FandA ] rate) to use to calculate for the cost shared budget?
- What typical types of distribution bases are available to calculate the indirect cost rate?
- Is There More Than One Way to Calculate an Indirect Cost Rate?
