Budgeting & Financial 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 Budgeting & Financial Management flashcards as text
Which budgeting method builds the budget from zero each cycle, requiring justification for every line item regardless of prior year spending?
Answer: Zero-based budgeting
Zero-based budgeting starts from a 'zero base' each period, requiring managers to justify all expenditures anew rather than simply adjusting prior figures.
A sponsor provides $15,000 in cash and $5,000 in in-kind services for an event. How should in-kind contributions typically be treated in the budget?
Answer: Recorded as both revenue and expense at fair market value
In-kind contributions should be recorded as both revenue (sponsorship income) and expense (the service or product received) to accurately reflect total event value.
What does 'accounts payable' represent in event financial management?
Answer: Money the organization owes to vendors for services rendered
Accounts payable are short-term liabilities representing amounts owed to external vendors and suppliers for goods or services already received.
A conference generates $200,000 in revenue and has $160,000 in total expenses. What is the profit margin?
Answer: 20%
Profit margin = (Revenue − Expenses) / Revenue × 100 = ($200,000 − $160,000) / $200,000 × 100 = 20%.
Which of the following is an example of a variable cost in event budgeting?
Answer: Per-person meal cost
Per-person meal costs increase or decrease directly with attendance, making them a variable cost that scales with event size.
When should an event planner present a post-event financial reconciliation report to stakeholders?
Answer: Within 30–60 days after the event when all invoices are settled
Post-event reconciliation should occur once all vendor invoices are received and paid, typically within 30–60 days, to provide an accurate financial close.
A planner is negotiating AV services and receives a quote 30% above budget. Which negotiation tactic is MOST appropriate?
Answer: Request an itemized quote and identify services that can be reduced or eliminated
Requesting an itemized breakdown allows the planner to identify cost drivers and selectively remove or downgrade non-essential services to align with the budget.