Q: What is the "Additional Cost (AC)" model and who can use it?

A: Additional Cost model is on of the cost reporting models to be used in FP6 projects, Non-commercial or non-profit organisations established under public or private law, or international organisations which do not have an accounting system that allows the share of their direct or indirect costs relating to the project to be distinguished may use the Additional Cost model. In addition physical persons acting as contractors must use the Additional Cost model. In this model, eligible direct additional costs incurred for the project and a flat rate for indirect costs are charged. The flat rate applied is 20% of all direct eligible costs minus the cost of sub-contracts. Contractors using the AC model may charge costs of permanent personnel to the management of the consortium activities if they can calculate their real costs.