(August 7, 2025 @ 6pm ET) 40 Minutes of Competence Study Session: ARE Math for Dummies - Firm Accounting

This week's Amber Book : 40 Minutes of Competence program is titled, “ARE Math for Dummies: Firm Accounting”

Relevant Exam Division: Practice Management (PcM)

In this session we'll clarify basic financial terms you'll see in the exams and use them in calculations to build your confidence. You'll recognize terms like "overhead" and learn how to quickly apply your understanding of these terms in various contexts of firm finances.

If you're the person who handles the accounting in your household, you probably have a good grasp of basic budgeting, and you already understand most (if not all) of these financial concepts intuitively. This presentation will formalize these concepts to the level NCARB expects on the exam, confirming what you likely already know.

For those who have completed the Pro Practice lessons in the Amber Book prep course, much of this content will be familiar. Our approach in this presentation may offer you another perspective if you're still getting comfortable with firm accounting concepts covered in these exams.

These study sessions are free and open to all, not just Amber Book subscribers, so join us this Thursday at 6pm ET: https://us02web.zoom.us/j/83922907346

You’ll take the first five minutes of class to answer this week's question alone, but if you would like to get a head-start on that, here is the assignment:

An architect is preparing an initial project budget using the following fee information:

• There is a total fee of $300,000 for the entire project team.
• 40% of the total fee is allocated for all consultants.
• 8% of the net fee is allocated for the architect's non-reimbursable expenses.
• 7% of the net fee is allocated for the architect's contingency.

What is the available budget for project labor?

A. $153,000
B. $165,000
C. $180,000