Cost allocation is the organization’s method of allocating costs to its programs and supporting services to the extent each program or service bears its fair share in accordance with the relative benefits received. The organization’s defined method of allocation should be simple, straightforward, and comply with its approved policies and procedures. Using the Uniform Guidance regulations, we will review allowable methods of cost allocation including direct costing and indirect cost rates and discuss suggestions on how your organization may use cost allocation to run more efficiently and effectively.
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