CHAPTER 7
Financial Management of MICE
Learning Outcomes
Funding
Adequate funding is essential for a successful event. The bigge
adequate financial support. To do so will result in the failure of
Budgeting
Careful budgeting is vital for the success of an event. A budget
budget carefully to find out the funding needed by the event a
implementation of the event.
Each activity should be analyzed as follows:
1. The specific activity to be undertaken
2. The estimated cost of each activity
3. The benefit of each activity
4. The income from the activity
5. The necessity of the activity
6. The place of the activity in the budget priority
7. How the expenditure of the activity can be monitored
8. How the income will come in and how certain it is
The costs and benefits of the whole project should be conside
made as accurately as possible.
, Income
800 Transportation and parking (variable expense)
801 Staff travel $ 500
802 Parking lot rental 3,000
Subtotal $ 3,500
900 Insurance (fixed expense)
901 Cancellation $ 1,000
902 Host liability 500
903 Comprehensive general liability 2,000
904 Pyrotechnics rider 1,000
Subtotal $ 45,000
Total expenses $ 51,750
Total variable expense
$ 29,250
Total projected income $393,000
Total projected expense 91,500
Gross retained earnings $301,500
Percentage of fixed overhead 150,000
Net retained earnings (reinvestment) $151,500
CONFERENCE AND EXPOSITION
Income
Expenses
100 Registration
101 Early-bird discount $100,000
102 Regular 50,000
103 On-site 25,000
104 Spouse/Partner 10,000
105 Special events 15,000
Subtotal $200,000
200 Marketing
201 Sponsorships 10,000
202 Advertising 15,000
203 Merchandise 10,000
Subtotal $ 35,000
300 Investments
301 Interest income 1,000
Subtotal $ 1,000
Financial Management of MICE
Learning Outcomes
Funding
Adequate funding is essential for a successful event. The bigge
adequate financial support. To do so will result in the failure of
Budgeting
Careful budgeting is vital for the success of an event. A budget
budget carefully to find out the funding needed by the event a
implementation of the event.
Each activity should be analyzed as follows:
1. The specific activity to be undertaken
2. The estimated cost of each activity
3. The benefit of each activity
4. The income from the activity
5. The necessity of the activity
6. The place of the activity in the budget priority
7. How the expenditure of the activity can be monitored
8. How the income will come in and how certain it is
The costs and benefits of the whole project should be conside
made as accurately as possible.
, Income
800 Transportation and parking (variable expense)
801 Staff travel $ 500
802 Parking lot rental 3,000
Subtotal $ 3,500
900 Insurance (fixed expense)
901 Cancellation $ 1,000
902 Host liability 500
903 Comprehensive general liability 2,000
904 Pyrotechnics rider 1,000
Subtotal $ 45,000
Total expenses $ 51,750
Total variable expense
$ 29,250
Total projected income $393,000
Total projected expense 91,500
Gross retained earnings $301,500
Percentage of fixed overhead 150,000
Net retained earnings (reinvestment) $151,500
CONFERENCE AND EXPOSITION
Income
Expenses
100 Registration
101 Early-bird discount $100,000
102 Regular 50,000
103 On-site 25,000
104 Spouse/Partner 10,000
105 Special events 15,000
Subtotal $200,000
200 Marketing
201 Sponsorships 10,000
202 Advertising 15,000
203 Merchandise 10,000
Subtotal $ 35,000
300 Investments
301 Interest income 1,000
Subtotal $ 1,000
