Which of the following best describes reimbursable costs?

Reimbursable costs refer to expenses incurred by a consulting firm during the course of a project that the client is obligated to repay. In the context of consulting agreements, these costs are typically outlined in the contract and can include a variety of expenditures such as travel, materials, and other necessary resources that the consulting firm needs to perform the contracted services. The client agrees to cover these costs as part of the overall engagement, ensuring that the consulting firm is not financially burdened by expenses directly related to the project.

This definition aligns with the nature of reimbursable costs, as they are specifically those that the client acknowledges and agrees to reimburse in the contract. This contractual agreement protects the consulting firm and clarifies the financial responsibilities of both parties involved in the consulting relationship.