M5 Flashcards
(15 cards)
refers to the estimated sales, revenues, and expenses for a specific event.
The principal stakeholders in an event have their forecasts, targets, and objectives and these must be understood by organizers in relation to the overall implementation of the event.
BUDGET
It is the process of recording business transactions in chronological order. The records forms part of the accounting information system.
BOOKKEEPING
It refers to the information system that includes the recording, classifying, summarizing, analysis and interpretation of the business performance at a specific period in time.
ACCOUNTING
is the art and science of managing money. Financial Management is about sources and uses of funds.
FINANCE
refers to what remains after expenses and taxes are deducted from the revenues
INCOME
These represent money you receive in exchange for the sale products and /or services.
- Revenues
- Sponsorships
- Donations and pledges
- Barters or exchange deals
- Advertising placements in your event collaterals
- Ticket sales
- Exhibit booth rentals
- Registration fees
- Entrance fees
- Membership fees
- Sales of merchandise
- Exhibit booth space rentals
- Concessionaire rentals
refer to amounts you need to pay and the costs of running the event.
EXPENSES
These are expenses that remain constant irrespective of changes in quantity. Quantity can refer to the number of delegates, booths, function rooms and meals.
FIXED EXPENSES
Here are some examples of fixed expenses:
1. Audio visual equipment
2. Rehearsal and performance fees for
3. Speakers fees or honoraria
4. Stage entertainers, hosts, dancers, choreographers
5. Décor and other similar contractors
6. Venue rental, excluding use of equipment paid
7. Rates of function rooms on a per-hour basis
8. Salaries and wages
9. Insurance
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These are expenses that vary with l changes in quantity.
VARIABLE EXPENSES
Here are some examples of variable expenses:
- Venue rental fees
- Monthly internet expense
- Amenities for function rooms such as use of equipment on a per-hour basis
- Meals
- Gifts and tokens
- Printing of invites and collaterals
- Placement of advertisements
- Electrical, gas and water charges
- Shipping, handling, and drayage
- Gasoline expenses
- Office supplies
Others
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quations for meals and rooms usualy have a notion “plus tax and gaities” on “plus tax and fees”
TAXES
are billed by facilities and service providers to offset labor costs and or equipment maintenance;
SERVICE CHARGES AND SURCHARGES
These are defined as tips, usually in the form of money, given in return for good service.
It is computed at 15-20% of the total costs of service. It is not a common practice in the Philippines, but these should be budgeted in addition to service charges.
GRATUITIES
are imposed to cover extraordinary incidents such as the rising fuel prices.
SURCHARGES
