Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CMP Test > 1. CIC 3, 8, 9: Strategic Planning and ROI, Accounting, Budgeting > Flashcards

1. CIC 3, 8, 9: Strategic Planning and ROI, Accounting, Budgeting Flashcards

1
Q

Def of Evaluation

A

1- Critiquing and rating the overall success of an event 2- Developing an event profile from accurate event statistics 3- A systematic process to determine the value of an activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Def of Objective

A

Formalized statement of outcomes to be anticipated as a result of the educational process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Def of Outsourcing

A

To subcontract a task or responsibility to a supplier that handles some aspect of an event, instead of using in house staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Def of ROI- return on investment

A

1- Net profit divided by net worth. A financial ratio indicating the degree of financial profitability. 2- Net benefits divided by the full loaded meeting costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Def of Strategic plan

A

Longe range plan for a company or organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who are the Stakeholder?

A

Anyone who has any input.

Events, marketing, HR, Procurment, Sales, Finance, Legal, Training, Admin’s,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The Phillips Model describes 5 levels of measurement-

A

LABRR
1-Learning- did they learn and aquire new skills?
2-Application- Are attendees applying what they learned onsite?
3- Business Impact- If applying what they learned, then was there a business impact?
4- ROI- If there was a business impact, what were they monetary costs compared to the costs of the mtg?
5-Reaction, Satisfaction, Planned Action- Attendees satisfied? Liked the sessions, Will they do things differently after attending?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q 
What is this formula used to calculate?
Net income (revenue minus program expenses) divided by program expenses, multiplied by 100
A

A: ROI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does SMM mean?

A

Strategic Meetings Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What 3 qualities does a solid SMM plan need?

A

Business planning and strategy- maximize company resources to achieve objectives, what meetings should the company hold, which ones should be planned internally, by admin’s, or outsourced

Organization and execution- What responsibilities are managed within the department, outsourced, what changes for improvement need to be made, technology

Trust and transparency- what metrics will be used to show value, trust w/ stakeholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What activities comprise the VALUE PROPOSITION for an internal events dept.?

A
  • Ensure solid business proposition for each event- branding, messaging, content objectives
  • Designing and organizing- experimental mapping to support objectives, creative and theme development, managing staff, communicating with allparties, reporting metrics
  • Operating on a logistical and tactical level- site selction, f&b, ground tansportation, etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q 
1.	A \_\_\_\_\_\_\_ is a long range plan of action for a company or organization.
A.	Optimization Plan
B.	Strategic Plan
C.	Maximization Plan
D.	Goals & Objectives Plan
A

B. Strategic Plan
Pg 11 CIC – Discuss SMMP – Strategic Meeting Management is not about the end product but rather about engaging in the disciplined practice to ensure that the end product maximizes resources, supports organizational strategies and produces a high return on investment (ROI)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q 
\_\_\_\_\_\_\_\_can be thought of as a gain or loss as a result of an investment of time & money.
A.	Net-Profit 
B.	Return of Revenue
C.	Opportunity Cost
D.	Return on Investment
A

D. Return on Investment

Pg 13 CIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q 
\_\_\_\_\_\_\_\_ will determine whether an event is intended to make a profit, break-even, or lose money.  
A.	Stakeholders
B.	Goals & Objectives
C.	Strategic Meeting Management
D.	Return on Investment
A

B. Goals & Objectives
Pg 49 CIC - Some events are a source of revenue; while the goal of other events are to be self-sustaining (pay for themselves); some may lose money or be subsidized.
Discuss Goals & Objectives – CIC pg 21 states “Determining the purpose of an event and creating clear Goals and measurable objectives in the MOST important step in the planning process. * discuss past CMP advice about G&O

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which is not an organizational factor that can affect the budget?
A. Legal Issues
B. Staffing Requirements
C. Prices Charged to Members vs Non-Members
D. Volunteers Workers
E. None of the above

A

E. None of the above

Pg 49 CIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q 
Building an event budget by analyzing both the projected and actual figures from the previous year’s budget is known as…
A.	Zero-based Budgeting
B.	Variable Cost Budgeting
C.	Fixed Budgeting
D.	Incremental Budgeting
A

D. Incremental Budgeting

Pg 50 CIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q 
Which one is the break even formula?
A.	BE=    	fixed costs	     - variable cost
		reg fee 
B.	BE=    	fixed costs + profit	
		# of attendees
C.	BE=    	fixed costs	
		reg fee - variable cost
D.	BE = 	fixed costs+profit	  +variable costs
		# of attendees
A

C. BE= fixed costs
reg fee - variable cost
Pg 50 CIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q 
Which formula gives you the registration fee?
A.	Reg Fee=    fixed costs     - variable cost
	                    variable costs-direct costs
B.	Reg Fee=    fixed costs + profit	
		     # of attendees
C.	Reg Fee=    fixed costs	
		    indirect cost - variable cost
D.	Reg Fee =  fixed costs + profit  +variable costs
		   # of attendees
A

C. Reg Fee= fixed costs
indirect cost - variable cost
Pg 50 CIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q 
Which of the following is not one of the 3 accounting tools that can help an event professional with budgeting and forecasting….
A.	Variable Cost Statement
B.	Income Statement
C.	Balance Sheets
D.	Cash Flow Statements
A

A. Variable Cost Statement

Pg 53 CIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

True or false - Return on Investment (ROI) can be measured as a gain or a loss as a result of both tangible and intangible value?
A. True
B. False

A

A. True
Pg 15 CIC
ROI is often hard to quantify. It can be tangible, such as cost savings or productivity gains, or intangible such as satisfaction with an event or positive public image.

21
Q

Economic ROI can be determined best when _______________
A. Attendees provides post event feedback via a survey
B. The event makes a greater profit than the year prior
C. Clear defined financial goals have been set
D. Analysis is handled by an outside third party

A

C. Clear defined financial goals have been set

Pg 15 CIC

22
Q 
A(n) \_\_\_\_\_\_ \_\_\_\_\_\_ is a statement of revenues and expenses over a period of time.
 A.  Balance Sheet
B.  Cash Flow Statement
C.  Income Statement
D.  Net-Profit Statement
A

A(n) ______ ______ is a statement of revenues and expenses over a period of time. A. Balance SheetB. Cash Flow StatementC. Income StatementD. Net-Profit Statement

23
Q 
What are the 2 most commonly used accounting methods?
A.  Accrual & Revenue
B.  Cash & Net-Profit
C. Cash & Accrual
D. Accrual & Payables Bookkeeping
A

C. Cash & AccrualCIC pg 53

24
Q

What is the best way to communicate that your master account is handled properly?
A. Send email with detailed instructions
B. Fax a front & back copy of the credit card with the BEO
C.Use a master account authorization form
D. Create a clause within the contract about the master account

A

C. Use a master account authorization formCIC pg 54

25
Q

When should you set up an onsite local bank account where you will deposit cash & checks for on-site registration?A. 30 days prior to eventB. 90 days prior to event C. 4 months priorD. 6 weeks prior200 pts

A

B. 90 days or 3 months prior to event CIC pg 55

26
Q 
The best time to establish expense projections to determine a preliminary cash flow schedule is…
A.  10 months prior
B. 1 year prior
C. 2 years prior
D.  1 ½ years prior to event
A

D. 1 ½ years prior to eventCIC 54

27
Q

Which is not an example of a variable cost?A. Food & beverageB. Handouts for attendeesC. Parking FeesD. Room Rental

A

D. Room Rental – Variable costs change with the addition of each attendeeCIC pg 50

28
Q 
If there is no financial history, then a budget must be based on estimates of potential income & likely expenses This is known as \_\_\_\_ budgeting.
A. Accrual budgeting
B.  Cash Budgeting
C. Incremental Budgeting
D. Zero-based Budgeting
A

D. Zero-based BudgetingCIC 50

29
Q 
What is not an example of a way to lessen  fixed or variable expenses?
A. Sponsorships
B.  In-kind donations
C. Trade-outs
D. Outsourcing
A

D. Outsourcingpg 49

30
Q

Name the three most important accounting tools for budgeting AND FORECASTING.

A

D. Income Statement, Balance Sheet, Cash Flow Statement CIC 53

31
Q

Balance Sheet –

A

A statement that indicates overall financial status by subtracting expenses from income. It provides the bottom line.

32
Q

Cash Flow Statement –

A

It does not include the amount of future income or outgoing cash.

33
Q 
Which accounting system is most commonly used for events and meetings?
A. Accrual
B.  Cash Based
C. Net-Profit
D. None of the above
A

A. Accrual BasedPCMA 39

34
Q

Who are event stakeholders?

A

A. List as many as possible! Internal, external, C-level, your own department, other departments (marketing, legal, finance)CIC 13

35
Q 
Which is a fundamental concept accepted as good practice that SMMP incorporates? 
A.  Trust & Transparency
B. Organization & Execution
C. Business Planning & Strategy
D. None of the above
E. All of the above
A

A. All of the aboveCIC pg 12

36
Q 
Which is not one of the 5 Phillips model levels of measurement?
A.  Application
B. Business Impact
C. ROI
D. Stakeholder Analysis
A

D. Stakeholder AnalysisCIC 16

37
Q

According to CIC, the last step in the ROI process is…A. Business ImpactB. ApplicationC. Stakeholder AnalysisD. MeasurementE. Demonstrating value

A

E. Demonstrating valueCIC 17

38
Q

In order to measure the effectiveness of marketing and identified when to rethink the strategic activities you should…
A. Review your budget
B. Consider changing marketing companies
C. Use your network to find a referral for a marketing company
D. tie your marketing efforts to goals or benchmarks

A

D. tie your marketing efforts to goals or benchmarksPCMA 65

39
Q

ROI (Return on Investment) can be both tangible (profit/loss) and/or intangible such as satisfaction of meeting. If the meeting grosses $100,000 in revenue and incurs $60,000 in expenses, then what is the ROI for this event?

A

66.6%
-$100,000-$60,000 *100=$60,000total gross revenue
– total expenses minus total expenses multiplied by 100 = ROI percentage

40
Q 
An annual meeting will be held in May 2004. The registration fee will be $250 per person. The fixed expenses for the meeting, which include honorarium, travel expenses, invitations, aV, meeting room rental, will total $60,000. The two-day meeting will provide continental breakfasts at $12pp daily, afternoon breaks at $5.50 pp, and lunches at $22.50 per person. A comprehensive syllabus costing $40, will be provided to each attendee. How many Attendees must attend in order for the meeting to break even?
A. 360 attendees
B. 698 attendees
C. 366 attendees
D. 484 attendees 
E. 465 attendees
A

E. 465 attendees (because it is the closest to the breakeven point)

41
Q 
The budget outlines a registration fee of $595 per attendee. variable costs total $375 pp. Fixed costs total $45,000. What is your contribution margin?
A. $220
B. $225
C. $375
D. $395
A

$220
Margin contribution = Reg Fee – Variable Costs
$220 = $595 - $375

42
Q 
The budget outlines a registration fee of $595 per attendee. variable costs total $375 pp. Fixed costs total $45,000. What is your contribution margin?In question above, assuming attendance of 200 ppl, what will the financial outcome reflect?
A. break even
B. profit of $44,000
C. profit of $220 pp
D. loss of $1,000
A

D. loss of $1,000

43
Q

You have a meeting with the following expenses:Coffee Breaks $10ppMeeting Room Rental: $2500AV Equipment: $1000Speaker Honorarium: $1000Lunch: $20 ppBuilding Insurance: $225Registration Fee: $75How many people will have to attend to break-even?

A

??

44
Q 
When dealing in the US dollars, you should increase your budget \_\_\_%-\_\_\_\_% because suppliers often up their prices to assume the foreign exchange risk by being paid in a non-local currency. 
A. 5%-10%
B. 10-20%
C. 20-25%
D. 10-15%
A

D. 10-15%CIC int 30

45
Q 
\_\_\_ is a point of sale tax that is levied by different countries at different rates for different commodities.
A. VAT
B. Foreign Exchange Tax
C. State Tax
D. Gratuity Tax
A

A. VATCIC Int 30

46
Q

As a general rule, ____ are entitled to reclaim any VAT but ____ are not.A. individuals / companiesB. Companies / individuals

A

B. Companies / individualsPts 150CIC Int 31

47
Q

Which meeting would have the lowest exchange rate risk if currencies are fixed…A. A Meeting that is 1 month outB. A meeting that is 6 Months outC. A meeting that is 1 year out D. A meeting is more than 18 months out

A

A. Meeting that is being planned 1 month outPts 200CIC int’l 29

48
Q

You have 32 people attending a meeting. There are ALSO 8 VIP’s you cover all of their expenses. With the following meeting costs, what should you charge for a registration fee to break-even?Meeting Room Rental: $1800AV Equipment: $600Coffee Breaks: $10ppAmenities: $15ppSecurity: $200Dinner: $60ppSpeaker Travel: $800

A

$212.50 per personuse formula = total fixed costs + variable cost per person # of paying attendeesAdd the cost of the VIP’s to the total fixed costs$212.50 = 3400+ (85*8=VIP cost) + 85 32

CMP Test (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions