Multifamily Housing Program Financial Management Toolkit

Knowledge Check – Reasonable Costs

Select the appropriate response to complete the statement and then, select the Submit button.

1. For a cost to be considered “reasonable,” it must meet all of the following requirements EXCEPT:

A. Determined to be ordinary and necessary to sustain the operation of the organization, deliver activities, and maintain strong performance.
B. Incurred after following the established practices of the organization in accordance with the terms and conditions of the award.
C. Incurred for an activity that benefits an eligible household.
D. Incurred by individuals who acted with prudence to provide the most benefit to the organization.