A cabinet allowance is $9,500. The owner selects a package costing $10,275, with no markup on allowance overages. What adjustment is needed?
Correct Answer
C) $775 increase.
The selected package is $775 over the allowance, so the increase is $775.
Why This Is the Correct Answer
The selected package is $775 over the allowance, so the increase is $775.
Why the Other Options Are Wrong
Option A: $725 credit.
$725 credit. is below the supported result for allowance reconciliation; it likely uses the wrong base, period, or account bucket.
Option B: $750 increase.
$750 increase. is below the supported result for allowance reconciliation; it likely uses the wrong base, period, or account bucket.
Option D: $19,775 total.
$19,775 total. is above the supported result for allowance reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Reconciling Cabinet money test: bucket before math for allowance reconciliation.
Reference Hint
Study anchor (closed-book): memorize Allowance reconciliation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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