Quiz: Key concepts

This is a multiple-choice quiz.

Click the question to see the answer.

1. You write off an amount in which of these situations?
   
   A. It reflects cost to the project that is not included in the contract amount.
   
   B. You cannot bill it for reasons beyond your firm's control, but you still want to track the potential earnings on the project.
   
   C. You want to track your nonbillable marketing costs.
   
   

   B. When you write off an amount, the spent amount remains but the billed amount is zero, thus showing as a write-off on reports.

2. What is DPE?
   
   A. A way to write off work you cannot bill
   
   B. The method Ajera uses to burden labor cost in project reports
   
   C. All general operating expenses
   
   D. All of the above
   
   

   B. DPE stands for direct personnel expense. It represents all the cost you pay on behalf of your staff. It includes all paid time off, salaries, fringe benefits, and employer taxes.

3. Work-in-progress (WIP) is:
   
   A. Work that is in progress and will soon be finished
   
   B. Billable time and expenses that have not yet been billed
   
   C. Unbilled labor only and excludes expenses or consultants
   
   

   B. Although the work was already completed or the expenses were already incurred, it is called work-in -progress because it is in progress of being billed.

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