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ARE 5.0 Practice Management Exam Prep

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Firm Financials: Profit-Loss Statement

13m 34s

In this newly updated ARE 5.0 Practice Management course, you will learn about topics such as insurance, firm financial documents and metrics, the B101, and firm legal structures. Our focused approach covers practice management topics comprehensively and succinctly, ensuring that you're prepared for each of the NCARB objectives covered on the PcM exam. Instructor Joy Meek lends an architect’s insight on topics like the standard of care, client relations, obtaining new projects, and firm management. The lesson format includes engaging motion graphics and visual learning aids to enhance your studying. When you're done with this course, you will have a thorough understanding of ARE 5.0 Practice Management content.

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If we divide the total indirect expenses by direct labor, we arrive at 1.32 a healthy overhead rate. The firm's overhead rate doesn't include direct labor, but instead expresses the cost of running your business in terms of direct labor. The break-even rate builds on the overhead rate by adding in the direct labor costs this rate is the multiple of an employee's salary that you need to charge, plus the direct labor cost needed in order to break even.

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From the course:
ARE 5.0 Practice Management Exam Prep

Duration: 8h 26m

Author: Joy Meek