Certified Research Administrator Practice Exam

Which of the following expenses would be included in the distribution base of MTDC?

1. Travel costs

2. Equipment depreciation

3. Sponsored Program Office expenses

4. Sub in excess of $25K

The correct answer is: Travel costs

The correct answer, travel costs, is included in the distribution base of Modified Total Direct Costs (MTDC) because MTDC is designed to provide a more accurate basis for calculating indirect costs associated with a research project. MTDC typically includes direct costs, such as salaries, wages, materials, supplies, and travel costs, while excluding certain costs that may skew the calculation of indirect costs, such as equipment, capital expenditures, and subawards exceeding $25,000. Travel costs are considered direct costs essential for project implementation, making them part of the distribution base because they directly contribute to the completion of the research objectives. As a result, including them allows for a better representation of the costs necessary for the research activity. In contrast, equipment depreciation is excluded from MTDC calculations because it falls under capital expenditures, which do not reflect the ongoing operational costs of a project. Sponsored Program Office expenses are also excluded as they are typically considered indirect costs rather than direct costs tied to specific research activities. Finally, subsistence or subawards that exceed the $25,000 limit are not counted in the MTDC distribution base, as they distort the measurement of direct costs.