Exam (elaborations)
CEM - FINANCE, BUDGETING & CONTRACTS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
- Course
- Institution
CEM - FINANCE, BUDGETING & CONTRACTS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
[Show more]
Seller
Follow
Performance
Reviews received
Content preview
CEM - FINANCE, BUDGETING &CONTRACTS QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
Zero-Based Budget - ANSWER Not based upon historical data. Identifies and assesses all sources of
expense & income. Most common for new launches.
Incremental Budget - ANSWER Prepared using a previous year's budget or actual performance as a basis,
with incremental changes estimated for the new budget period
Hybrid Budget - ANSWER Both aspects of zero-based and incremental budgets. Best for a change in
venue or timing of an event - ideal for international events.
Line Item Budgets - ANSWER Frequently used. All 3 types of budgets. Easy to prepare, provides a way to
compare performance from one period to another.
Chart of Accounts - ANSWER Document that lists all sources of revenue and expense using distinctive
codes for each line.
Performance/Function Budget - ANSWER Focuses primarily on the functions and outcomes for each item
and is useful in developing the cost of an activity. (Quantity not quality is a disadvantage)
Giveaways - ANSWER Promo Product - can be easily prioritized and funded at cost-effective levels
Profit Based - ANSWER Revenue exceeds expenses
Break-Even - ANSWER Revenue and expenses are equal
Deficit-Based - ANSWER Expenses exceed revenue
, Fixed Expenses - ANSWER Typically charges for AV, facility rental, website development, marketing costs,
registration services & equipment, event signage. Once negotiated, charges do not change based on
attendance or consumption (agreed upon in advance)
Variable Expenses - ANSWER Subject to consumption (ex. is F&B)
Indirect Expenses - ANSWER Ex. Office rent, staff salaries, staff benefits, office maintenance and similar
overhead costs
Budget Contingencies - ANSWER Unanticipated expenses
4 Major sources of Revenue - ANSWER Attendance Registration, Exhibit/Booth stand sales, Sponsorship,
Advertising
Break Even Calculation - ANSWER (# of attendees known, fee not known)
1. Determine fixed costs
2. Determine variable costs (var. costs pp) x (# of att)
3. Add fixed to variable costs
4. Break even = Total costs/#of attendees
(If fee is known)
1. Contribution Margin = (reg. fee) - (Variable costs)
2. Fixed costs/contrib. margin = # of att. needed to break even
Weighted Avg. Revenue - ANSWER Good way to estimate max. exhibit space rental income per net sq. ft.
of income producing exhibit space.
Rev. per NSF = total expected revenue/amt. of revenue produced per sq ft
Rev per Booth = total revenue/#of revenue producing booths
Informed Decision Making - ANSWER Determining what the exhibitor will pay for exhibit space also
includes a # of additional important considerations
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Performance. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$20.82. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now