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FRINGE POOL

A type of indirect cost pool that commonly is established for the purpose of accumulating employee fringe benefit costs. This type of pool has become increasingly popular in recent years. Common costs accumulated in such pools include those for compensated absences, health insurance, bonuses, retirement plans, and payroll taxes.

FRINGE RATE

An indirect cost rate which expresses the relationship between costs accumulated in a fringe pool and the related base for allocating such costs, for a given period of time. A typical allocation base for a fringe pool is the related labor dollars.

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