Lesson 4: Financial Management Flashcards
Domain D
- The document used to entice sponsorships for your event and contains information regarding the overview of the event, the potential return on investment, terms and conditions, and demographic information would be called the:
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A. Stakeholder management plan
B. Financial Sponsor Plan
C. Sponsorship Prospectus
D. Donation plan
C. Sponsorship Prospectus
- Selling a sponsorship to an entity that will underwrite the majority of the event and will have its brand name associated with the event is called a:
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A. Title Sponsor
B. In-Kind Sponsor
C. Managing Partner Sponsor
D. Donation Sponsor
A. Title Sponsor
- Budgeting based on having no prior history and the budget is created using estimates of revenue and expenses is called:
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A. Indirect budget
B. Zero-based budget
C. Incremental budget
D. Zero-line budget
B. Zero-based budget
- These expenses are used to cover staff salaries, overhead, and any organizational expenses not directly related to the event:
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A. Variable Costs
B. Fixed Costs
C. Incremental Costs
D. Indirect Costs
D. Indirect Costs
- This tool helps monitor cash flow and illustrates the budget lifecycle from inception to final billing. It’s called:
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A. Billing Timetable
B. Chart of Accounts
C. Balance Sheet
D. Income Statement
A. Billing Timetable
- Which one of these represents the Contribution Margin?
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A. Attendees- Registration Fee
B. Total Fixed Costs + Total Variable Costs
C. Registration Fee – Variable Costs
D. Total Fixed Costs – Breakeven Units
C. Registration Fee – Variable Costs
- If you wanted to make sure you had a guaranteed currency rate of exchange for your future meeting you would:
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A. Have the rate float within certain limits
B. Buy Forward the currency rate of exchange
C. Use a guaranteed VAT to fix the currency
D. Ask to have your exchange rate tied to the Euro
B. Buy Forward the currency rate of exchange
- Which type of accounting system counts income and expenses as they are actually received and paid?
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A. Cash Accounting
B. Income Accounting
C. Accrual Accounting
D. Variable Accounting
A. Cash Accounting
- In General who is able to reclaim any VAT paid?
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A. Every attendee who is not from the country where the VAT is collected
B. The meeting organizer
C. The company hosting the meeting
D. Any individual in attendance
C. The company hosting the meeting
- The document provided to the hotel which specifies what can be billed to the master account, limits of financial liability and who is authorized to charge to the master account is called the:
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A. Billing timetable
B. Direct Bill application
C. Balance sheet
D. Master Account Authorization Form
D. Master Account Authorization Form
- Net Income is:
A. Expenses + Income
B. Gross Profit- Loss
C. Revenue – Expenses
D. Gross Profit + Revenue
C. Revenue – Expenses
- A Variance in the budget is defined as:
A. An item in the budget not expected
B. The difference between the budgeted line item and the actual line item
C. Charges to the budget that cannot be categorized
D. The difference between net income and net expenses
B. The difference between the budgeted line item and the actual line item
- When calculating your registration fee, which of the following costs would be considered “variable costs”?
A. Meals, T-shirts, guest rooms
B. Salaries, overhead, insurance
C. Guest Speaker fees, meeting room rental, transportation costs
D. Meeting room rental, guest rooms, food and beverage
A. Meals, T-shirts, guest rooms
Cash Accounting
Counts income and expenses as they are received and paid
Accrual Accounting
Counts expenses and income when they are earned or incurred
Chart of Accounts
List of line items that make up the revenue and expense categories
Paid Out
the advance of cash a hotel may give you then charge to your master account- to use as cash tips for example
Registration Fee Formula
Registration Fee = Total Fixed Costs + Total Variable Costs
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# Attendees
Total Variable Costs
Are the Variable costs X number of ppl
Breakeven Units Formula
Breakeven Units = Total Fixed Costs
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Registration Fee- Variable Costs
Contribution Margin Formula
Registration Fee- Variable Costs