What type of direct cost (distribution) base should my organization select?
The distribution base chosen should result in each award bearing a proportionate share of the indirect costs relative to the benefits received from those costs. For example, if several of your programs and grants do not pay salaries, then it might not be a good idea to use total salaries and wages as the direct cost base. If you do, those programs paying most of the salaries and wages would bear a larger, disproportionate share of the indirect costs. In this situation, it might be more appropriate to use modified total direct costs (exclusive of unusual or distorting expenditures). Please consult the ICS office if you need additional guidance.
Related Questions
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- What type of direct cost (distribution) base should my organization select?
- What type of distribution (direct cost) base should my organization select?
