Direct salary is described as salary derived from billable hours.

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Multiple Choice

Direct salary is described as salary derived from billable hours.

Explanation:
Direct salary is compensation tied to the work that can be billed to a client. It represents direct labor—the portion of pay that stems from hours actually billed on projects. This is different from base salary, which is a fixed amount paid regardless of how much of the employee’s time is billed. Indirect salary covers roles whose time isn’t billed directly to a client (overhead). Profit from client billing is revenue earned from clients after costs, not a salary paid to staff. So salary derived from billable hours best describes direct salary because it directly aligns pay with billable work performed.

Direct salary is compensation tied to the work that can be billed to a client. It represents direct labor—the portion of pay that stems from hours actually billed on projects. This is different from base salary, which is a fixed amount paid regardless of how much of the employee’s time is billed. Indirect salary covers roles whose time isn’t billed directly to a client (overhead). Profit from client billing is revenue earned from clients after costs, not a salary paid to staff. So salary derived from billable hours best describes direct salary because it directly aligns pay with billable work performed.

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