Event Management Event Budgeting and Finance

Question 1

Which budgeting method starts from zero each period, requiring justification for every expense?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Activity-based budgeting

Answer

Rolling budget

Question 2

What percentage of an event budget is typically recommended as a contingency reserve?

Accepted Answer

5–10%

Answer

1–3%

Answer

15–20%

Answer

25–30%

Question 3

A master service agreement (MSA) with a venue typically locks in which financial term?

Accepted Answer

Attrition clauses

Answer

Guest count guarantees

Answer

Speaker fees

Answer

Marketing spend

Question 4

Which cost is classified as a fixed cost in event budgeting?

Accepted Answer

Venue rental fee

Answer

Catering per head

Answer

Printing per attendee

Answer

Shuttle rides per person

Question 5

What document itemizes all projected revenues and expenses for an event before it takes place?

Accepted Answer

Pro forma budget

Answer

Post-event report

Answer

Balance sheet

Answer

Cash flow statement

Question 6

When calculating the break-even point for a ticketed event, which formula is correct?

Accepted Answer

Fixed costs ÷ (ticket price – variable cost per attendee)

Answer

Fixed costs ÷ ticket price

Answer

Total revenue – total expenses

Answer

Variable costs × expected attendance