When a service is entered, an hourly rate must be entered?

When a service is entered, an hourly rate must be entered?

• A. True
• B. False
• C. Not required unless it's a service item
• D. Only for hourly billed items

Answer: (B)

In QuickBooks, you don’t have to enter an hourly rate whenever you add a service item. The rate is simply the price per unit, and you can bill a service with a fixed amount by entering the total on the line instead of a rate. If you are tracking hours, you can use hours with a rate to calculate the total, or you can set a default rate on the item for consistency, but neither action is strictly required. So the statement that an hourly rate must be entered is not correct.

In QuickBooks, you don’t have to enter an hourly rate whenever you add a service item. The rate is simply the price per unit, and you can bill a service with a fixed amount by entering the total on the line instead of a rate. If you are tracking hours, you can use hours with a rate to calculate the total, or you can set a default rate on the item for consistency, but neither action is strictly required. So the statement that an hourly rate must be entered is not correct.