Evaluating a Firm’s Financial Metrics [Exercise A]

This question goes for all the Sunday lectures…
I participated in today’s lecture and prepared by watching the required videos from Objective 2.0 but there was no discussion or math about how to find the Utilization Rate, Overhead Rate, Break Even Multiplier and Net Multiplier. Am I missing something or are we to find that info on our own in the AHPP? Where would I look for this info if the info is not in our study guide?
Thank you!


Hi @dio let’s see if one of our Virtual Workshop coaches can help with this!
@coachjasongolub @coachjoshmings @coachdarionziegler

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Hi @dio ,

It appears a lot of the vocabulary you mentioned are found in the first video of Objective 2.1: “How does the Office Work”, which was one of the prerequisite videos.

If you are still confused about terminologies after watching the recommended lectures or notice a term you’re not familiar with in the workshop description looking into the Architect’s Handbook of Professional Practice is never a bad idea! All these terms are available in the AHPP glossary.

Chapter 7, “Financial Management” of the AHPP also does a deep dive into these and other financial management and planning terms. It shows some examples of calculations as well.

I am noticing some of these terms are also defined in the PcM flashcards.
There’s a lot of overlap between PcM & PjM. If you want to learn more, there area also lecture videos in PjM objective 1.2 that relate to this topic!

Hope this helps!

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@Darion, sorry for the late reply. I’m not confused about the terminology but the math required to figure Utilization Rate, Overhead Rate, Break Even Rate and Net Multiplier. Yes, they are in the flashcards and chapter 7 of AHPP. Is there nowhere else, a video showing how to accomplish these scenarios or does one need to participate in the Virtual Workshops to learn them?
Thank you again for all your help and direction.

Hi @dio ,

No worries. The math is tricky!

If you’re looking for math examples beyond what is in the lectures I would definitely read through the AHPP, in particular the examples of billing worksheets and budgets they have. Be sure to also check through the answers of the practice quizzes as they will run through any calculations needed.

The Virtual Workshops are meant to expand upon the topics candidates reported being tripped up by the most! So there may be examples in the workshops that run through topic step-by-step in further detail than other BKS resources.

I believe the Workshop covering these topics was recorded as a part of our ARE Live Podcast and can be watched at the link below:

You can also check out our latest ARE Live PcM Mock Exam Podcast at the link below:

Hope this helps!

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