Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
29 Cards in this Set
- Front
- Back
|
What is a budget?
|
A budget is an itemized estimate of expected income and expenses.
|
|
|
What does a budget provide to an organization?
|
A budget provides a financial road map to help and organization achieve its monetary goals.
|
|
|
What must an event manager be able to do to be sucessful?
|
An event manager must be able to prepare a thorough and understandable budget to be a successful event manager.
|
|
|
Where can you find an example of an event operating budget?
|
Appendix 5.1, page 35. Be sure to review!
|
|
|
How can a budget be divided?
|
A budget can be divided into an operating, capital, or cash flow budget.
|
|
|
What is an operating budget?
|
An operating budget is a financial plan for one fiscal year.
|
|
|
What is a capital budget?
|
A capital budget is for equipment with a unit cost of $1,000 or more and has a useful life of at least two years.
|
|
|
What is a cash flow budget?
|
A cash flow budget anticipates costs that will be paid prior to the implementation of the event.
|
|
|
What are examples of items to be included in a cash flow budget?
|
Examples of a cash flow budget includes deposits on facility rentals, printing and promotional materials, deposits for entertainers, and start-up change for food and beverage sales.
|
|
|
What two categories do operating budget expenses fall into?
|
Operating budget expenses fall into fixed and variable expenses.
|
|
|
What are fixed expenses?
|
Fixed expenses are paid regardless of attendance and often do not change even if revenue falls short of projections.
|
|
|
What are examples of fixed costs/expenses?
|
Fixed costs/expenses include promotional materials, guaranteed entertainment fee, and facility rental fees.
|
|
|
What are variable expenses?
|
Variable expenses are expenses that increase or decrease depending on attendance or other factors (for example, food and beverage costs depend on attendance.)
|
|
|
Where can you find an example of an expense report?
|
See Appendix 5.2, page 38. Be sure to review.
|
|
|
What types of expenses should be included in a budget?
|
Entertainment, human resources, concessions, administrative expenses, equipment & supplies, license, permits, & tax, marketing/promotions, event signs, sponsor expenses, general liability, weather, & alcohol liability insurance are types of expenses that should be included in a budget.
|
|
|
What is most likely the largest expenditure in an event budget?
|
Equipment and supplies are most likely the largest expenditure in the event budget.
|
|
|
What should be considered when considering entertainment expenses?
|
The level of entertainment, accomodations for the entertainment, security, and/or transportation all should be considered when considering entertainment expenses.
|
|
|
What is a human resources expense?
|
A human resource expense includes any manpower service that the event has to pay for to produce the event (such as event management, sales commissions, electrician, security, parking attendants, set-up and clean-up personnel)
|
|
|
What are equipment and supply expenses?
|
The cost for tents, tables, chairs, portable toilets, communications, generators, artificial lighting, temporary fencing, golf carts, decorations, and other site supplies are equipment and supply expenses.
|
|
|
What are administrative expenses?
|
Administrative expenses are expenses related to the administration of the event such as office supplies, copier, telephone, office space lease, postage, travel, and training.
|
|
|
Where can you learn more about license, permits, and tax?
|
Refer back to Chapter 9 flash cards.
|
|
|
What are marketing/pormotion expenses?
|
Billboards, radio & televsion ads, website, image design, banners, posters, brochures are all marketing/promotion expenses.
|
|
|
Why is insurance needed?
|
Insurance is needed to cover any potential accidents or injuries to anyone at the event.
|
|
|
How can events generate revenue?
|
Sponsorships, donations/patrons, hospitality/hotel tax, city, county & state funds, grants & foundations, admission/tickets, concessions, artist fees, activity areas, merchandise, parking, product/service donations, and fundraisers are how events can generate revenue.
|
|
|
What do cash-handling procedures help to minimize?
|
Cash handling procedures help minimize the risk of loss, theft, and error when individuals handle cash before, during, and after an event.
|
|
|
What procedures should be included in a cash-handling plan?
|
Written procedures for collecting and transporting cash should be adopted by the event's governing and included in a cash handling plan.
|
|
|
Where can you see examples of procedures for handling cash and ticket procedures for an event?
|
Appendix 5.3, page 39. Be sure to review!
|
|
|
When cash transactions take place, how many people should be involved?
|
At least two people should be involved when cash transactions take place.
|
|
|
Where can you find information for Vendor ticket weigh-in and reconciliation?
|
See appendix 5.4, page 41. Be sure to review!
|
