DTM3701 Assignment 2 2026

ASSESSMENT 2 – SEMESTER 1 2026

DTM3701 – BUSINESS TOURISM

UNIQUE NUMBER: 503669



Question 1

1.1 Define fixed costs and variable costs in the context of business events.



Fixed Costs: In the context of business events, fixed costs are expenses that do not
change with the number of delegates or participants attending the event. They are
incurred regardless of whether the event has 100 or 600 attendees .
Variable Costs: Variable costs are expenses that fluctuate in direct proportion to the
number of delegates or participants. These costs increase as more delegates register
and decrease if fewer people attend .



1.2 Identify four (4) fixed costs and two (2) variable costs from the AREBS budget.



Fixed Costs:

Venue hire (R520 000): This is a fixed cost because the cost of renting the Cape
Town ICC is a set amount for the two days, irrespective of how many of the 600
expected delegates actually show up .
Audio-visual equipment (R260 000): The cost to hire the necessary projectors,
screens, and sound systems is a fixed price agreed upon with the supplier and does
not change based on the number of attendees .