1. Financial Administration
Welcome to
Special Events
Financial Administration
Chapter Five
Welcome
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2. AGENDA Welcome and review Opening activity
Mini lecture “Financial Administration”
Discussion
Concluding Activity
Assignment
Adjournment
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3. Budgeting Financial philosophy Profit Break even Loss leader
Projections and estimates
History
Macro and micro economic factors
Types of financing
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4. Typical Expenses Accounting Advertising Advertising specialties Décor
Entertainment
Evaluations
Event managers fee
Food and beverage
Videography
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5. Typical Income Registration fees Sponsorship fees Grants and gifts
Exhibit fees
Advertising fees
Concessions
Parking
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6. Account Codes 100 Marketing 101 Advertising 102 Direct mail
103 Public relations
104 Promotion
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7. Fixed Overhead Expenses
Predictable items such as rent, salaries, insurance, telephone and other standard operating expenses that continue whether or not you conduct the event.
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© John Wiley & Sons, Inc. 2002

8. Variable Expenses Catering Audio visual rentals Registration materials
Those items that fluctuate in cost based upon the number of guests
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9. Break-even point= total fixed costs contributional margin
300 = $3000
$10
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10. Accounts Payable Negotiate the best terms Settle accounts on time
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11. Controlling Purchases
Use purchase orders
Do not allow substitutions without permission
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12. Foreign Exchange Rates
The price of one currency expressed to another currency.
Market conditions affect the strength of currencies.
Predictable government policies help strengthen currency values.
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13. Application Activity
Create a budget for a festival, convention, exposition, and corporate product launch event.
Calculate the break even point for each event.
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14. Assignment
Reader chapter six
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15. Adjournment
Good Luck!
© John Wiley & Sons, Inc. 2004