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Event Management
Notes
Task What are the financial need for any event?
Self Assessment
Fill in the blanks:
6. .............................. associated with officials needed to run the event may have to be borne
by the event organisers.
7. Event .............................. are generally responsible for their own travel and accommodation
costs.
8. In .............................. or local events travel and accommodation costs are unlikely.
9. The cost of medals, trophies and other awards requires detailed knowledge about the
number of competitors, the categories of divisions of the competition and the
..............................
10. Salaries applies only if events are organized by..............................
Did u know? Fundraising
Fundraising events are an effective way to promote and raise money for a specific
organization. All fundraising activities are governed by the Donations Policy.
Example: Donation, Charitable trusts are the common examples of fundraising
5.5 Break Even Analysis
Break-even analysis helps to find the point where the costs incurred in an event will be equal to
the revenues earned from the project. It is the point from where profit starts coming. When a
company starts a particular event, it will have a fair idea of costs to be involved. There are
onetime costs of material that will be used in the event; and there are also certain costs that
cannot be consumed in one event, such as costs of assets like generator etc.
5.5.1 Break-even Point
A company’s break-even point is the amount of sales that it must generate in order to equal its
expenses. In other words, it is the point at which the company neither makes a profit nor suffers
a loss. Calculating the break-even point (through break-even analysis) can provide a simple yet
powerful quantitative tool for managers. In its simplest form, break-even analysis provides
insight into whether or not revenue from a product or service has the capacity to cover the
relevant costs of production of that product or service.
All event managers must be aware about the level of turnover at the event so as to cover all the
costs and know at what point profit will start being made.
To construct a break-even chart or statement for an event, the following information is required:
The number of customers per week: This can be calculated from the cashier’s analysis sheet
which shows the total number of covers as extracted from the customers’ bills.
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