Multifamily Housing Program Financial Management Toolkit

Knowledge Check – Direct Personnel Costs

Select the appropriate response to complete the statement and then, select the Submit button.

1. The allocation of personnel costs is a process by which costs can be fairly charged to all activities that benefit from those costs.


2. The benefits of using a time and activity reporting system to document personnel time include all of the following EXCEPT:

A. Allows employees to log time spent on different clients, activities, and grants.
B. Provides a mechanism for employees to report all the time spent working for that day.
C. Determines client eligibility.
D. Allows for reporting to be current and up to date.

3. Generally, costs are considered reasonable if they do not exceed what a prudent person would incur under similar circumstances. Compliance with this general requirement, as it applies to personnel costs, is established in:

A. Organization human resource records that establish pay ranges and job descriptions
B. The budget submitted by the grantee
C. Organization accounting policies
D. Government accounting policies