Direct Personnel Expense

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amarino2010

March 13, 2026 20:30

In the past ARE study material has used the term Direct Personnel Expense to refer to salary + benefits + taxes.  If "Direct Expense" is in a test question, can I be sure that it is referring to direct project costs?  Same thing for "Direct Salary" and "Direct Labor".  I've heard all of these terms before and I think what they mean is direct project costs, but I just want to be sure.

Thanks!

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  Kaylinn March 14, 2026 23:12

  I have been using the following resource from Hyperfine to understand the difference between those three terms. Direct personnel expense is as you say, but direct salary is different and direct labor is how much time you are actually billing to a project. 

  Important Financial Terms for PCM and PJM - Hyperfine Architecture

  The primary source for study materials for this test is the Architect's Handbook for Professional Practice. Chapter 7 is on financial management which will likely provide more insight as well. I'm just getting starting in this chapter so that's all I know at the moment. Good luck! 

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