Subpart E: Cost principles 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.402: Composition of costs

2 CFR 200.402 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies when you build your application and budget, and to every cost you charge after award.

Shows up in your application: BudgetBudget: summary

What 2 CFR 200.402 requires

1. Allowable costs

What you must do

Compute the total cost of the Federal award as the sum of allowable direct costs plus allocable indirect costs, minus any applicable credits.

When it applies

Preparing or revising any Federal award budget

BudgetBudget: summary
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Ask how 2 CFR 200.402 applies to your application

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Sections 2 CFR 200.402 refers to

Sections that refer to 2 CFR 200.402

Regulation text of 2 CFR 200.402

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The total cost of a Federal award is the sum of the allowable direct and allocable indirect costs minus any applicable credits

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.402

What does 2 CFR 200.402 require?

Compute the total cost of the Federal award as the sum of allowable direct costs plus allocable indirect costs, minus any applicable credits.

When does 2 CFR 200.402 apply?

Preparing or revising any Federal award budget.

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.