Quiz: Key concepts

This is a true/false quiz.

Click the statement to see the answer.

1. WIP is a term that defines work that is currently being done.

   False. Although WIP stands for work-in-progress, it is actually work that is completed but not yet billed.

2. DPE is the term that defines the process of running a payroll.

   False. DPE (direct personnel expense) is employer-paid payroll benefits, such as insurance, taxes, and 401(k) matches.

3. Examples of billable billing types are Time & Expense and Percent Complete.

   True. Billable billing types available in Ajera are Time & Expense, Fixed Fee, Percent Complete, Unit Price, and Percent of Construction Cost. Nonbillable billing types include Marketing and Nonbillable.

4. Activities are categories in Ajera that identify work items and expenses for establishing billing rates, invoicing, and reporting.

   True. Examples of activities are billable time, meetings, mileage, holiday, and photocopies.

5. WIP is created when you enter timesheets.

   True. It is also created when you enter expense reports, vendor invoices, in-house expenses, and beginning balance unbilled work-in-progress.

6. Amount spent is another term used to define WIP.

   False. Amount spent (also called spent value) is the cost of effort expended on a project if you are able to achieve your assigned billing rates. Amount spent is determined by the billing rate table.

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