Grant Writing FREE Grant Writing Grant Budget Formulation Questions and Answers 2

Question 1

When preparing a grant budget, which cost category typically includes expenses such as office rent, utilities, and administrative staff salaries?

Accepted Answer

Indirect costs

Answer

Indirect costs (also called facilities and administrative costs) cover overhead expenses like rent, utilities, and administrative salaries that support the project but are not directly attributable to it.

Question 2

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

Accepted Answer

To explain why each budget line item is necessary and how costs were calculated

Answer

A budget justification narrative explains the rationale behind each line item, demonstrating that costs are reasonable, necessary, and directly tied to project activities.

Question 3

A federal grant application requires a 20% cost share. If the total project cost is $500,000, how much must the grantee contribute from non-federal sources?

Accepted Answer

$100,000

Answer

A 20% cost share on a $500,000 total project cost equals $100,000 that the grantee must contribute from non-federal sources.

Question 4

Which federal regulation establishes the principles for determining allowable costs under federal grants?

Accepted Answer

2 CFR Part 200 (Uniform Guidance)

Answer

2 CFR Part 200, known as the Uniform Guidance, consolidated previous OMB circulars and establishes cost principles, audit requirements, and administrative standards for federal grants.

Question 5

What distinguishes a modified total direct cost (MTDC) base from a total direct cost base when calculating indirect costs?

Accepted Answer

MTDC excludes equipment, capital expenditures, and subaward amounts exceeding $25,000

Answer

The MTDC base excludes equipment, capital expenditures, patient care charges, rental costs, tuition remission, scholarships, and the portion of subawards exceeding $25,000.

Grant Writing Practice Test

Grant Writing Practice Test

Grant Writing FREE Grant Writing Grant Budget Formulation Questions and Answers 2