Question

State and local governments and nonprofit organizations that receive grants or contracts from the federal government should charge

costs of these grants or contracts in conformity with:
A. Cost Accounting Standards Board standards.
B. Office of Management and Budget cost circulars.
C. Financial Accounting Standards Board standards.
D. Governmental Accounting Standards Board standards.

Answer 1

State and local governments and nonprofit organizations that receive federal grants or contracts should charge costs in conformity with B) Office of Management and Budget cost circulars.

Step-by-step explanation:

State and local governments and nonprofit organizations that receive grants or contracts from the federal government should charge costs of these grants or contracts in conformity with Office of Management and Budget cost circulars. These circulars provide guidelines and requirements for the allocation and charging of costs on federal grants and contracts.