Which of the following expenses is included in the distribution base of MTDC?

The correct response emphasizes the inclusion of travel costs in the distribution base of Modified Total Direct Costs (MTDC) because MTDC is specifically designed to include most direct costs associated with a sponsored project while excluding certain types of expenses that are considered indirect costs. Travel costs are often directly related to a project and necessary for carrying out research or program objectives, making them a legitimate part of the MTDC calculation.

In contrast, equipment depreciation and expenses related to the Sponsored Program Office are usually not included in MTDC since they are considered indirect costs that do not directly support the specific projects being funded. The exclusion of subcontractor costs that exceed $25,000 also reflects the intent to avoid counting external expenditures that can complicate the calculation of what constitutes direct support for the project.

Hence, travel costs stand out as a relevant and permissible expense in the context of MTDC, helping to accurately reflect the direct costs tied to the conduct of the research or project.