CMM Budgeting & Financial Management 5

Question 1

For an international meeting in the EU, which tax may a foreign organizer be able to partially reclaim on eligible expenses?

Accepted Answer

Value-added tax (VAT)

Answer

VAT on certain business expenses may be recoverable by foreign businesses through refund procedures.

Question 2

A meeting's sponsorship package offers exclusive branding to one sponsor per category. What is the financial benefit of exclusivity?

Accepted Answer

It allows a premium price for the sponsorship

Answer

Exclusive rights increase sponsor value, supporting a higher price point.

Question 3

Which expense is generally categorized as indirect (overhead) rather than a direct event cost?

Accepted Answer

A share of the organization's office rent and staff salaries

Answer

Allocated office and staff costs support many activities and are treated as overhead.

Question 4

A cancellation clause specifies liquidated damages of 50% of anticipated revenue if canceled 180 days out. Anticipated room and F&B revenue is $300,000. What is owed?

Accepted Answer

$150,000

Answer

50% of $300,000 = $150,000 in liquidated damages.

Question 5

What does a negative budget variance on an expense line mean?

Accepted Answer

Actual spending exceeded the budgeted amount

Answer

An unfavorable expense variance means actual costs ran over budget.

CMM - Certified Meeting Management Practice Test

CMM - Certified Meeting Management Practice Test

CMM Budgeting & Financial Management 5