GPC Financial Management & Budgeting 1

Question 1

What is a 'direct cost' in grant budgeting?

Accepted Answer

Costs that can be specifically identified with a particular sponsored project

Answer

Direct costs are those that can be specifically and exclusively identified with a particular sponsored project or activity.

Question 2

Which federal regulation governs cost principles for non-profit organizations receiving federal grants?

Accepted Answer

2 CFR Part 200

Answer

2 CFR Part 200 (Uniform Guidance) consolidated federal grant regulations including cost principles for non-profits and other entities.

Question 3

What is the primary purpose of a budget justification in a grant proposal?

Accepted Answer

To explain and justify each budget line item to the funder

Answer

A budget justification provides detailed explanations for each line item, demonstrating that costs are necessary, reasonable, and allowable.

Question 4

What does 'cost sharing' or 'matching' mean in the context of grant funding?

Accepted Answer

The grantee's contribution of resources to the funded project from non-federal sources

Answer

Cost sharing refers to the portion of project costs the grantee contributes from non-federal sources to supplement the grant award.

Question 5

Which of the following is typically NOT an allowable cost under most federal grants?

Accepted Answer

Alcoholic beverages served at a project event

Answer

Alcoholic beverages are explicitly listed as unallowable costs under 2 CFR Part 200 and most federal grant cost principles.

GPC - Grant Professionals Certification Practice Test