Which factors should guide professional judgment in determining allowability?

• A. Only the grant budget.
• B. Reasonableness, regulatory requirements, project context, and documentary support.
• C. Personal beliefs.
• D. The opinions of vendors.

Answer: (B)

Determining allowability rests on applying professional judgment within the rules and the context of the award. Costs must be reasonable for the work performed and the circumstances, and they must comply with applicable regulatory requirements that govern the grant, including cost principles and agency policies. The project’s context matters too—the cost should align with the project's scope, objectives, timeline, and funding terms. Finally, there must be documentary support—records like invoices, timesheets, and approvals—that substantiate the cost and allow for auditability. Taken together, these elements create an objective basis for judging allowability rather than relying on personal beliefs or vendor opinions, and they go beyond simply looking at the budget itself.