Budget Management Flashcards
7 cards from real CCEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budget Management flashcards as text
A planner separates event costs into direct and indirect categories. Which is an example of an indirect cost?
Answer: Allocated administrative overhead from the parent organization
Indirect costs like allocated overhead are not directly tied to the event but are shared organizational expenses distributed across multiple projects.
What financial document formally authorizes the event budget and sets spending limits?
Answer: Budget approval or appropriation document
A budget approval document signed by relevant stakeholders officially authorizes expenditures up to approved limits and provides accountability.
An event planner is evaluating two venues. Venue A has a lower rental fee but higher mandatory F&B minimums. How should the planner compare costs?
Answer: Calculate the total cost of ownership including all mandatory commitments
Total cost of ownership analysis includes all mandatory fees, minimums, and ancillary costs to provide a true apples-to-apples comparison.
In event finance, what does 'accounts payable turnover' indicate?
Answer: How quickly an organization pays its vendor invoices
Accounts payable turnover measures how efficiently an organization pays outstanding vendor invoices over a given period.
A planner negotiates a rebate with a hotel based on total room nights consumed. This is an example of:
Answer: A volume-based incentive or rebate agreement
Volume-based rebates reward organizers financially for delivering a guaranteed level of business, reducing the effective cost of the event.
Which statement BEST describes a 'rolling budget' in event planning?
Answer: A continuously updated forecast that adds a future period as the current period ends
A rolling budget maintains a consistent planning horizon by adding a new period as each period closes, keeping forecasts current and actionable.
When allocating shared costs across multiple events in a portfolio, which method distributes overhead based on each event's proportion of total direct costs?
Answer: Proportional (or relative) cost allocation method
Proportional cost allocation distributes shared overhead in proportion to each event's direct costs, reflecting actual resource consumption more accurately.