CLG 006 Certifying Officer Test 2025 – 400 Free Practice Questions to Pass the Exam

For a certifying officer to assess the allowability of a cost, it is essential that the cost meets certain criteria: it must be reasonable, necessary for the performance of the award, and conform to applicable regulations. This means that the costs incurred should not only be sensible in amount but also essential for achieving the objectives of the project. Additionally, they must align with federal regulations and guidelines that govern the use of funds.

Reasonableness refers to whether the cost reflects what a prudent person would pay under similar circumstances. Necessity indicates that the cost is essential to the overall project objectives. Conformance to regulations ensures compliance with federal laws, agency requirements, and the terms of the grant or contract.

The other options focus on aspects that may be relevant but do not encapsulate the comprehensive criteria required for allowability. For instance, while obtaining pre-approval from a supervisor might be useful in some cases, it doesn't inherently relate to the cost's allowability status. Setting costs within a specific budget percentage does not guarantee that those costs meet the necessary criteria of being reasonable, necessary, and compliant with regulations. Lastly, relying solely on internal policy without considering external regulations and guidelines may lead to non-compliance and possible disallowance of costs.