Question 1

Variance analysis is:&#10;A) A means of staying on track in terms of timelines&#10;B) One way to monitor the work of employees&#10;C) A means of checking for budget deviations&#10;D) A measure of effective service delivery

Accepted Answer

Variance analysis is primarily used to compare planned financial outcomes with the actual financial outcomes, thereby checking for deviations in budgeting. It helps in understanding where the budgeted figures and actual figures diverge, allowing for corrective actions to be taken.

Question 2

In the context of event budgets, allocating resources includes:&#10;A) Wages expense&#10;B) Sales&#10;C) Income&#10;D) Donations

Accepted Answer

Allocating resources in the context of event budgets primarily involves assigning funds to various expenses necessary for the event's execution, such as wages expense. Sales, income, and donations are sources of funds rather than allocations of resources.

Question 3

A budget is:&#10;A) An end-of-year report&#10;B) A forecast&#10;C) A way to solve business problems after they occur&#10;D) The basis for managing inventory

Accepted Answer

A budget is a forecast, or projected plan, of expected income and expenses for a certain period of time (usually a year). It is used to guide planning and decision-making, as well as to monitor and control spending.

Question 4

if you had 300 people attending an event, paying $120 per head, the income would be:&#10;A) $36,000&#10;B) $46,000&#10;C) $200,000&#10;D) $24,000

Accepted Answer

To calculate the total income, multiply the number of people attending (300) by the amount each person pays ($120). This equals $36,000 (300 x $120 = $36,000).

Question 5

Benchmarks for event management are more difficult than for hospitality because:&#10;A) They are so diverse in type and thus difficult to compare&#10;B) Incomes are impossible to establish&#10;C) Payments are generally overdue&#10;D) All restaurants have similar ratios, such as food cost and labour

Accepted Answer

Event management benchmarks are more challenging due to the diversity of event types, making comparison difficult. Hospitality, on the other hand, often involves more standardized operations like restaurants, where common ratios can be applied.

Question 6

If forecast revenue was $45,000 and actual was $39,000 what is the percentage of variance?&#10;A) 13.30%&#10;B) 15.10%&#10;C) No variance&#10;D) 18.00%

Accepted Answer

The percentage of variance is calculated as ((Forecast - Actual) / Forecast) * 100. So, ((45,000 - 39,000) / 45,000) * 100 = 13.33%, which rounds to 13.30%.

Question 7

Which of the following is the most useful budget for a wedding business looking at the profitability of each wedding?&#10;A) Cash flow budget&#10;B) Purchasing budget&#10;C) Wage budget&#10;D) Project budget

Accepted Answer

A project budget is most useful for a wedding business looking at the profitability of each wedding because it includes all revenues and costs associated with a specific project, allowing for a detailed analysis of its profitability.

Question 8

If your food and beverage to sales ratio was 50% and your sales were $850,000 what would you expect to spend on food and beverage?&#10;A) $546,000&#10;B) $400,000&#10;C) $425,000&#10;D) $286,213

Accepted Answer

The food and beverage to sales ratio of 50% means that 50% of sales are expected to be spent on food and beverage. Therefore, 50% of $850,000 is $425,000.

Question 9

A budget is a means of:&#10;A) Control&#10;B) Looking at value for money&#10;C) Managing the workforce&#10;D) Managing VIK

Accepted Answer

A budget is primarily a tool for control, as it helps in planning and monitoring financial resources to ensure they are used effectively and efficiently.

Question 10

GST reporting for goods and services tax is a requirement of:&#10;A) Premiers Department&#10;B) Australian Tax Office&#10;C) State and Territory Tax Office&#10;D) Local government

Accepted Answer

The Australian Tax Office (ATO) is responsible for the administration and collection of the Goods and Services Tax (GST) in Australia.

Deck 8: Manage Finances Within a Budget