PcM Section 2 Objective 2.1 Financial Formulas

Do we have to memorize formulas like utilization rate and net multiplier or will those be provided to us for reference during the exam?

Other formulas include:
Overhead rate
Break-even rate
Profit-to-earnings ratio
Net revenue per employee
Aged accounts receivable
Current ratio
Quick ratio
Debt-to-equity ratio
Return on equity

You need to have these memorized. Once you take a few practice exams, you’ll be able to tell which ones are asked about most commonly: utilization rate, net multiplier, breakeven rate, overhead rate. Any formulas you are given on the exam will be listed under “references,” and in my experience, the formulas they provide aren’t very helpful, at least for the PcM/PjM/CE exams.

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Okay. Thank you.

@amim Thank you for your input and advice!

@Citrillion Check out page 126 “Study Resources” of the ARE 5.0 Guidelines for specific formulas that will be provided to you during the exam.

Happy studying to both of you!

Kiara Galicinao, AIA, NCARB
Black Spectacles

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