I. Direct costs – (§200.413) Direct costs are costs that can be specifically identified for a specific purpose of a grant, cooperation agreement or contract; costs can be allocated relatively easily and with high precision directly to specific sponsored activities. These direct costs fall into the typical categories of personal services, materials and consumables, travel, subcontracting or sub-bonuses, tuition waivers, equipment and participant support Traditionally, graduate students have played an important role in conducting sponsored research. Undergraduate students are also increasingly involved in research activities. For all students participating in sponsored research projects, it is important to ensure that the terms of sponsored research agreements do not conflict with a student`s academic progress and that students have the right to refuse to participate in a particular project if they wish. A consulting contract is required in most cases and is always required by federal proponents. These services will be approved on a case-by-case basis, provided that the fees are reasonable and that a selection process has been made to find the most qualified person available. Payment for advisory services may be charged to sponsored projects if the conditions of the specific award and the Unitit Directive are allowed.