Utilization Ratio: Your Key to Firm Finances and the ARE 5 | PcM

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In this Coaching Highlight from our Mind Over ARE sessions (inside ABC Club Premium), we unpack a core financial concept that shows up on the ARE 5.0 Practice Management (PcM) exam and in everyday firm life: the utilization ratio.

So what is it really measuring? Why does NCARB care about it? And how does it shape the way firms allocate time, staff, and resources?

In this episode, we’ll cover:

What utilization ratio actually means in an architecture firmCommon misconceptions about what “billable time” really includesHow NCARB frames this concept on the ARE 5.0 examThe difference between a principal’s utilization ratio vs. a project architect’sWhy this metric matters for profitability, staffing, and your own career path

You’ll walk away with a deeper understanding of the financial heartbeat of an architecture firm, plus a clear framework for how to approach utilization ratio questions on the exam.

This is just one example of the practical insights you’ll find inside ABC Club Premium, where you’ll get access to live coaching calls, replays, and a full searchable library of Coaching Highlights like this one.

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