b201a113_lowability_of_Costs_Activities__Explanation_of_Allowable_Costs
[Items] Salaries and Wages /Incentive Compensation
Incentive compensation to employees based on cost reduction, or efficient performance, suggestion awards, safety awards, etc., is allowable to the extent that the overall compensation is determined to be reasonable and such costs are paid or accrued pursuant to an agreement entered into in good faith between the non-Federal entity and the employees before the services were rendered, or pursuant to an established plan followed by the non-Federal entity so consistently as to imply, in effect, an agreement to make such payment.
7.9 Allowability of Costs/Activities
Explanation of Allowable Costs