A job is 40 percent complete on a $120,000 contract, but only $36,000 has been billed. What earned value has not yet been billed?
Correct Answer
D) $12,000.
Forty percent of $120,000 is $48,000 earned value. Billed amount is $36,000, so underbilling is $12,000.
Why This Is the Correct Answer
Forty percent of $120,000 is $48,000 earned value. Billed amount is $36,000, so underbilling is $12,000.
Why the Other Options Are Wrong
Option A: $8,000.
$8,000. is below the supported result for underbilling calculation; it likely uses the wrong base, period, or account bucket.
Option B: $10,000.
$10,000. is below the supported result for underbilling calculation; it likely uses the wrong base, period, or account bucket.
Option C: $11,000.
$11,000. is below the supported result for underbilling calculation; it likely uses the wrong base, period, or account bucket.
Memory Technique
Billing position memory for underbilling: earned floor, billed tilt.
Reference Hint
Study anchor (closed-book): memorize Underbilling calculation from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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