ARE Live: PcM Virtual Workshop Exercise

[Hans-Christian]

You’ll probably hear this a lot, but try to understand the concepts. (direct and indirect labor, overhead rate, utilization rate and so on). The reason is that in the questions where you need to calculate how many hours Joe has left to work on the museum in schematic design phase, for instance, you want to know what the relevant numbers are and what numbers aren’t relevant. As people have often said that there is sometimes more information provided in the question than you need for answering the question. So do a “check” while you near the end of a calculation to see “does this make (conceptual) sense”. They aren’t intentionally confusing us, although it comes across that way. They are making sure that we know what these concepts mean, so our firm can stay financially afloat.