Which of the following is true about the concept of allowable costs?

Allowable costs represent expenses that can be reimbursed under specific payment formulas outlined by payers, such as government programs or insurance companies. These costs are subject to certain guidelines and regulations that define what can be covered and reimbursed. Understanding allowable costs is crucial for organizations as they navigate funding and budgeting, ensuring that they include only those costs that can be compensated based on existing agreements or policies.

The other options do not align with the definition of allowable costs. Unrealized costs do not pertain to reimbursement, while costs excluded from reimbursement models are not considered allowable. Additionally, costs incurred in the development of new services could be allowable, but not all development costs will meet the criteria for reimbursement. The key aspect of allowable costs is their classification as reimbursable under specific payment structures, making option C the correct choice.