NCARB - Project Management Exam | Verified Exam Questions and
Answers | Latest Updated Study Material 2026
Question:
1. Profit
Answer:
Fees for services minus the operating expenses;
Income - costs of services - Overhead = Profit (before tax)
Question:
2. Basic Services
Answer:
Services that the architect agrees to provide under the scope of the contract with
the owner
Question:
3. NTE
Answer:
Not - To - Exceed
Question:
4. Indirect Expens-
es
Answer:
Indirect Expenses incurred and not chargeable to a specific project. Same as
Overhead
Question:
5. Hourly NTE Pro-
posal
Answer:
A cost proposal where the architect invoices the owner for all costs of basic services
incurred on the project up to a predetermined limit not to exceed
,Question:
6. Hourly Fee Pro-
posal
Answer:
A cost proposal where the architect invoices the owner for all costs of basic services
incurred on the project with no fixed limit but assessed hourly
Question:
7. Additional Ser-
vices
Answer:
Services that are above and beyond the agreed upon 'basic services' scope of the
original contract
Question:
8. Balance Sheet
Answer:
A financial statement that shows assets & liabilities at a specific date
Question:
9. Boilerplate
Answer:
A section of a standard text, especially a contract clause, that is already existing and
available to use or be inserted in to legal documents.
Question:
10. Fixed Fee Propos- A cost proposal where the fees for the architect's services are predetermined
al
Answer:
before work is started
Question:
11. Financial Year
Answer:
A 12-month period of business activity
, Question:
12. Due Care
Answer:
The requirement that a professional exercise reasonable ability and judgement
in a specific circumstance, the absence of which constitutes negligence. Same as
Standard of Care
Question:
13. Overhead
Answer:
Expenses indirectly incurred and not chargeable to a specific project. Same as
Indirect Expense
Question:
14. Profit/Loss State- Shows the final outcome of the firm's financial performance over the past financial
ment
Answer:
year. Shows sales, cost of sales, gross margin, operating expenses, and profits or
losses.
Question:
15. DPE
Answer:
Direct Personnel Expense
Question:
16. Direct Personnel
Expense
Answer:
Salaries and wages attributable to a specific project, plus benefits such and
employment taxes, insurance, sick leave, holidays, vacations pensions, and similar
contributions and benefits.
Question:
17. Direct Expense
Answers | Latest Updated Study Material 2026
Question:
1. Profit
Answer:
Fees for services minus the operating expenses;
Income - costs of services - Overhead = Profit (before tax)
Question:
2. Basic Services
Answer:
Services that the architect agrees to provide under the scope of the contract with
the owner
Question:
3. NTE
Answer:
Not - To - Exceed
Question:
4. Indirect Expens-
es
Answer:
Indirect Expenses incurred and not chargeable to a specific project. Same as
Overhead
Question:
5. Hourly NTE Pro-
posal
Answer:
A cost proposal where the architect invoices the owner for all costs of basic services
incurred on the project up to a predetermined limit not to exceed
,Question:
6. Hourly Fee Pro-
posal
Answer:
A cost proposal where the architect invoices the owner for all costs of basic services
incurred on the project with no fixed limit but assessed hourly
Question:
7. Additional Ser-
vices
Answer:
Services that are above and beyond the agreed upon 'basic services' scope of the
original contract
Question:
8. Balance Sheet
Answer:
A financial statement that shows assets & liabilities at a specific date
Question:
9. Boilerplate
Answer:
A section of a standard text, especially a contract clause, that is already existing and
available to use or be inserted in to legal documents.
Question:
10. Fixed Fee Propos- A cost proposal where the fees for the architect's services are predetermined
al
Answer:
before work is started
Question:
11. Financial Year
Answer:
A 12-month period of business activity
, Question:
12. Due Care
Answer:
The requirement that a professional exercise reasonable ability and judgement
in a specific circumstance, the absence of which constitutes negligence. Same as
Standard of Care
Question:
13. Overhead
Answer:
Expenses indirectly incurred and not chargeable to a specific project. Same as
Indirect Expense
Question:
14. Profit/Loss State- Shows the final outcome of the firm's financial performance over the past financial
ment
Answer:
year. Shows sales, cost of sales, gross margin, operating expenses, and profits or
losses.
Question:
15. DPE
Answer:
Direct Personnel Expense
Question:
16. Direct Personnel
Expense
Answer:
Salaries and wages attributable to a specific project, plus benefits such and
employment taxes, insurance, sick leave, holidays, vacations pensions, and similar
contributions and benefits.
Question:
17. Direct Expense
