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emerit Event Manager / TCM study materials
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emerit Event Manager / TCM practice questions

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Question 1Event Planning and Program Design

When writing a SMART objective for an event, what does the 'M' stand for?

  1. Marketed
  2. Memorable
  3. Managed
  4. Measurable Correct answer.

Explanation

In the SMART framework, M refers to measurable, meaning the objective must be quantifiable so success can be evaluated after the event. Planners attach metrics such as attendance numbers or satisfaction scores so progress can be verified objectively.

Question 2Event Planning and Program Design

An event budget line that covers costs which do not change with the number of attendees is best described as what type of cost?

  1. Variable cost
  2. Contingency cost
  3. Fixed cost Correct answer.
  4. Marginal cost

Explanation

Fixed costs remain constant regardless of how many people attend, such as venue rental or insurance premiums. Variable costs, by contrast, rise and fall with attendee numbers, for example catering per person.

Question 3Event Planning and Program Design

Which document defines the overall purpose, scope, and high-level goals of an event and guides all later planning decisions?

  1. Run sheet
  2. Floor plan
  3. Invoice schedule
  4. Event brief Correct answer.

Explanation

The event brief captures the purpose, scope, target audience, and high-level goals agreed with the client or stakeholders. It is the reference document against which later planning choices are tested for alignment.

Question 4Event Planning and Program Design

What is the primary purpose of a critical path in event project planning?

  1. To identify the sequence of dependent tasks that determines the earliest completion date Correct answer.
  2. To assign seating at the gala dinner
  3. To record attendee feedback after the event
  4. To list all suppliers by cost

Explanation

The critical path is the longest chain of dependent tasks and therefore sets the shortest possible project duration. Any delay on a critical task pushes back the event date unless resources are added or dependencies changed.

Question 5Event Planning and Program Design

In program design, what does a 'breakout session' typically refer to?

  1. A scheduled coffee and networking interval
  2. A plenary talk delivered to the full audience
  3. A smaller parallel session where attendees choose a topic Correct answer.
  4. A rehearsal of the closing ceremony

Explanation

Breakout sessions run in parallel and let attendees select the content most relevant to them. They contrast with plenary sessions, where the entire audience gathers in one room.

Question 6Event Planning and Program Design

Which element of an event design document most directly supports accessibility for attendees with mobility impairments?

  1. The sponsor recognition list
  2. An accessible route and seating plan Correct answer.
  3. The social media hashtag
  4. The speaker biography template

Explanation

Accessibility planning requires mapping step-free routes, accessible seating, and facilities such as accessible toilets. These physical provisions are documented in the venue layout and access plan.

Question 7Event Planning and Program Design

What is the main function of a risk register in event planning?

  1. To track the event's marketing spend
  2. To list confirmed speakers and their session times
  3. To document the catering menu
  4. To record identified risks, their likelihood, impact, and mitigation owners Correct answer.

Explanation

A risk register is a structured log capturing each identified risk together with its assessed likelihood, impact, mitigation action, and responsible owner. It enables monitoring and review throughout the planning cycle.

Question 8Event Planning and Program Design

Which scheduling approach best describes building an event program by starting from the opening time and assigning each activity a start and end time in sequence?

  1. Backward scheduling
  2. Resource leveling
  3. Forward scheduling Correct answer.
  4. Rolling wave planning

Explanation

Forward scheduling begins at a known start point and sequences activities onward from there. Backward scheduling instead works from a fixed end date, which is common when the event date is immovable.

Question 9Event Planning and Program Design

A conference has a fixed budget of 60,000 for venue and catering. Venue hire costs 24,000 and catering is 45 per delegate. What is the maximum number of delegates the budget supports?

  1. 900
  2. 1,000
  3. 600
  4. 800 Correct answer.

Explanation

Subtract the fixed venue cost from the budget to obtain the catering allowance: 60,000 minus 24,000 equals 36,000. Dividing 36,000 by 45 per delegate gives 800 delegates as the maximum affordable number.

Question 10Event Planning and Program Design

A gala dinner must finish by 23:00, and the final awards segment needs 40 minutes plus a 15-minute buffer. Working backward, by what time must the awards segment begin?

  1. 22:15
  2. 22:20
  3. 22:05 Correct answer.
  4. 22:30

Explanation

Backward scheduling subtracts the required durations from the fixed end time. Forty minutes plus a fifteen-minute buffer equals fifty-five minutes, and 23:00 minus 55 minutes is 22:05.

Question 11Event Planning and Program Design

A client wants an event to increase qualified leads by 20 percent within three months. Which planning artifact should be created first to translate this into a workable program?

  1. A signed supplier contract
  2. A post-event survey draft
  3. A set of measurable objectives and success metrics Correct answer.
  4. A detailed AV equipment list

Explanation

Business goals must first be translated into measurable event objectives with defined metrics before content and logistics are designed. These objectives then drive format selection, audience targeting, and evaluation methods.

Question 12Event Planning and Program Design

A planner has 500 delegates and 6 parallel breakout rooms, each seating 80. What is the minimum number of breakout time slots needed so every delegate can attend one session per slot?

  1. 4
  2. 2 Correct answer.
  3. 3
  4. 1

Explanation

Six rooms at 80 seats provide 480 seats per slot, which is fewer than 500 delegates. A second slot is therefore required so that the remaining delegates can be accommodated.

Question 13Event Planning and Program Design

During design, a planner learns that a keynote speaker can only arrive at 14:00 but the opening plenary was scheduled for 09:30. What is the most appropriate design response?

  1. Ask the speaker to deliver remotely without informing the client
  2. Cancel the keynote and shorten the event by one day
  3. Double-book the keynote in two slots to cover both times
  4. Move the keynote to a 14:00 slot and restructure the morning program around other content Correct answer.

Explanation

Program design must accommodate confirmed speaker availability while preserving overall flow and value for attendees. Rescheduling the keynote and rebalancing the morning content maintains a coherent agenda and keeps stakeholders informed.

Question 14Event Planning and Program Design

A venue's maximum safe occupancy is 1,200 people. Expected attendance is 1,050 delegates plus 90 staff, 60 exhibitors, and 40 speakers. What is the correct planning conclusion?

  1. The event is within capacity with 100 places to spare
  2. The event exceeds capacity by 100 people
  3. The event exceeds capacity by 40 people Correct answer.
  4. The event is within capacity with 40 places to spare

Explanation

Total occupancy is 1,050 plus 90 plus 60 plus 40, which equals 1,240 people. This exceeds the safe limit of 1,200 by 40, so attendance or staffing must be adjusted.

Question 15Event Planning and Program Design

Which program design choice best supports networking objectives at a professional conference?

  1. Structuring facilitated networking rounds with assigned discussion prompts Correct answer.
  2. Scheduling all sessions in a single large hall
  3. Removing name badges to reduce waste
  4. Extending plenary lectures and reducing breaks

Explanation

Networking outcomes improve when interactions are structured, for example through facilitated rounds and discussion prompts that give participants a reason to talk. Unstructured gaps alone often produce clustering among people who already know each other.

Question 16Event Planning and Program Design

A planner is designing a multi-day program and wants to reduce attendee fatigue. Which design principle is most relevant?

  1. Alternating high-intensity content with lighter or interactive segments Correct answer.
  2. Maximizing the number of sessions per day
  3. Removing all breaks to shorten the daily schedule
  4. Scheduling all keynotes consecutively on the final day

Explanation

Cognitive fatigue builds when demanding content is delivered without variation, so designers alternate intensive sessions with lighter, interactive, or social segments. Rhythm and pacing keep attention and engagement higher across a long program.

Question 17Event Planning and Program Design

A sponsor requires logo visibility on all stage content in exchange for funding. Where should this requirement be captured so it is not lost during production?

  1. In the sponsor agreement and a linked production requirements checklist Correct answer.
  2. In the attendee registration form
  3. In the post-event satisfaction survey
  4. Only in the verbal briefing to the AV technician

Explanation

Contractual obligations should be recorded in the agreement and mirrored in an operational checklist that production staff work from. This traceability ensures deliverables are verified rather than relying on memory or verbal instruction.

Question 18Event Planning and Program Design

An outdoor festival needs a contingency plan for severe weather. Which design element is the most direct mitigation?

  1. A defined shelter-and-suspension protocol with trigger thresholds Correct answer.
  2. An increased social media posting schedule
  3. A revised speaker biography format
  4. A published list of food vendors

Explanation

Effective mitigation defines specific triggers, such as wind speed thresholds, and the actions that follow, including sheltering and suspension. This converts a vague concern into a rehearsed operational response.

Question 19Event Planning and Program Design

A planner must choose between two halls. Hall A seats 400 and costs 18,000. Hall B seats 650 and costs 26,000. Expected attendance is 380. Which choice is most defensible on cost efficiency grounds?

  1. Hall B, because larger venues always improve attendee experience
  2. Hall A, because smaller venues are always cheaper overall
  3. Hall A, because cost per expected attendee is lower and capacity is sufficient Correct answer.
  4. Hall B, because the higher capacity guarantees growth

Explanation

Hall A costs 18,000 for 380 attendees, about 47 per person, while Hall B costs about 68 per person for the same attendance. Since Hall A already meets expected demand, it delivers better cost efficiency without sacrificing capacity.

Question 20Event Planning and Program Design

A program team notices that workshop sessions are oversubscribed while panel sessions are half empty. Which design analysis is most useful?

  1. Compare registration demand against format capacity and adjust the format mix Correct answer.
  2. Reduce all session lengths by half
  3. Add more panel sessions to balance the numbers
  4. Assume attendees dislike panels and cancel them permanently

Explanation

Demand data should be compared with the capacity and appeal of each format before structural changes are made. Adjusting the mix, for example by adding workshop repeats or reframing panels, responds to evidence rather than assumption.

Question 21Event Planning and Program Design

A client insists on a program element that conflicts with the venue's fire safety limit. What is the most appropriate professional response?

  1. Reduce the advertised attendance without telling the client
  2. Document the conflict, explain the legal constraint, and propose a compliant alternative Correct answer.
  3. Proceed because the client is paying for the event
  4. Ignore the issue and hope the fire service does not inspect

Explanation

Legal and safety requirements override client preference, so the planner must surface the conflict clearly and offer an alternative that meets the constraint. Documenting the advice protects both parties and demonstrates professional duty of care.

Question 22Event Planning and Program Design

A planner is comparing a single large plenary format against multiple smaller tracks for a 900-person conference with diverse specialisms. Which analytical trade-off is most relevant?

  1. Plenary reduces logistical complexity but limits content relevance; tracks increase relevance but multiply resource and scheduling demands Correct answer.
  2. Tracks eliminate the need for any plenary sessions
  3. Plenary always generates more revenue than tracks
  4. Plenary formats remove the need for speaker contracts

Explanation

The choice involves balancing operational simplicity against content relevance for a diverse audience. Tracks serve specialist interests better but require more rooms, speakers, and coordination, so the decision should weigh audience profile against resource capacity.

Question 23Event Planning and Program Design

Midway through planning, a key venue cancels and the event date cannot move. Which sequencing of actions best reflects sound program design under constraint?

  1. Secure a feasible alternative venue, then re-sequence the program to fit its constraints Correct answer.
  2. Keep the program unchanged and assume any venue can accommodate it
  3. Cancel the event immediately without exploring alternatives
  4. Redesign the full program first, then search for venues

Explanation

When the date is fixed, venue feasibility becomes the binding constraint that shapes what the program can contain. Securing a workable venue first allows the program to be re-sequenced around real room capacities, layouts, and technical limits.

Question 24Event Planning and Program Design

An event aims to change attendee behaviour, not just inform them. Which program design approach is most consistent with that aim?

  1. Removing all follow-up contact after the event
  2. Longer lecture segments with minimal interaction
  3. Distributing printed brochures at registration only
  4. Practice-based workshops with feedback and commitment-setting Correct answer.

Explanation

Behaviour change is supported by active practice, feedback, and explicit commitment rather than passive information exposure. Designing interactive components and follow-up reinforcement aligns the program with the intended outcome.

Question 25Event Planning and Program Design

A sponsor offers funding conditional on a keynote slot that would displace a session central to the event's stated objectives. What is the strongest planning judgement?

  1. Move the displaced session to an unadvertised side room
  2. Reject all future sponsorship from that company
  3. Assess the impact on objectives and negotiate an alternative high-visibility benefit Correct answer.
  4. Accept immediately because sponsorship revenue always outweighs program content

Explanation

Program integrity should be protected while commercial relationships are maintained, so the planner evaluates objective alignment and proposes alternative recognition. Negotiation preserves both the sponsor relationship and the event's stated purpose.

Question 26Event Planning and Program Design

Which document defines the purpose, target audience, measurable objectives, and overall concept of an event before detailed logistics begin?

  1. The staffing roster
  2. The event brief or concept document Correct answer.
  3. The supplier payment schedule
  4. The floor plan drawing

Explanation

The event brief, sometimes called the concept or planning document, captures why the event exists, who it serves, and what success looks like in measurable terms. It is created first and then guides all later decisions about format, venue, and budget. Logistics documents are downstream outputs that implement the brief.

Question 27Event Planning and Program Design

A planner is drafting measurable objectives for a two-day trade show. Which objective is written in the most evaluable form?

  1. Generate at least 150 qualified leads and 40 signed contracts by 30 days after the show Correct answer.
  2. Raise brand awareness among the regional business community
  3. Attendees will have a positive experience of the show
  4. Make the show the best in the industry

Explanation

A measurable objective names a metric, a target value, and a deadline so that results can be verified afterwards. The lead and contract target with a 30-day window satisfies all three elements. The other statements describe aspirations without a quantifiable threshold or timeframe.

Question 28Event Planning and Program Design

In program design, what does the term 'session flow' refer to?

  1. The sequence in which invoices are approved
  2. The layout of power sockets in meeting rooms
  3. The movement of delegates through the catering queue
  4. The order and pacing of sessions across the program to sustain attendee engagement Correct answer.

Explanation

Session flow describes how content blocks are sequenced and paced over the program, including variation in format and placement of breaks. Good flow keeps energy high and avoids long stretches of passive listening. The other options concern operations or finance rather than program structure.

Question 29Event Planning and Program Design

Which element of a program plan specifies who is responsible for each activity and by when it must be completed?

  1. The run sheet timeline
  2. The action plan with owners and deadlines Correct answer.
  3. The delegate feedback survey
  4. The sponsor agreement

Explanation

An action plan assigns each task an accountable owner and a due date, which makes follow-up and progress tracking possible. A run sheet sequences activities on the event day itself but does not assign ownership across the planning cycle. Sponsor agreements and surveys serve different purposes.

Question 30Event Planning and Program Design

A planner is designing a one-day conference for 300 delegates with a mix of plenary and workshop content. Which combination best balances cost control with attendee choice?

  1. Six parallel tracks running all day with no plenary
  2. Twelve parallel workshops running simultaneously
  3. A morning plenary followed by two rounds of four parallel workshops Correct answer.
  4. A single plenary room used for the entire day

Explanation

A plenary opening followed by a limited number of workshop rounds shares common content efficiently while still offering choice, and it keeps room and speaker costs manageable. Too many parallel tracks fragment the audience and multiply costs. A single-room format removes choice entirely.

Question 31Event Planning and Program Design

A planner is building a program for an audience that includes senior executives and junior staff. Which design choice best supports engagement across both groups?

  1. Restricting all sessions to a single format
  2. Running only large keynote sessions for the whole day
  3. Scheduling back-to-back presentations with no breaks
  4. Offering a mix of plenary sessions and differentiated breakout streams by seniority or interest Correct answer.

Explanation

Mixed audiences engage best when shared plenary content is combined with breakout options that match different levels of experience and interest. Differentiation lets each group find relevant material without splitting the event entirely. Uniform formats or nonstop presentations tend to lose parts of the audience.

Question 32Event Planning and Program Design

Which planning artifact is the most appropriate place to record the assumption that a keynote speaker will confirm within two weeks?

  1. The catering contract
  2. The final event report
  3. The delegate name badges
  4. The assumptions and dependencies log Correct answer.

Explanation

Assumptions and dependencies belong in a dedicated log so they can be monitored and acted on if they change. Recording the speaker confirmation assumption there lets the team track the deadline and plan a fallback. The other artifacts are unrelated to planning assumptions.

Question 33Event Planning and Program Design

A planner wants the program to include a hands-on learning component for 120 delegates. Which format is most suitable?

  1. A networking cocktail reception
  2. A series of small facilitated workshops with practical exercises Correct answer.
  3. A 60-minute keynote address to the full group
  4. A panel discussion with five speakers

Explanation

Hands-on learning requires active participation, practice, and feedback, which small facilitated workshops provide. Keynotes, panels, and receptions are largely passive or social formats. Matching the format to the learning objective is a core program design decision.

Question 34Event Planning and Program Design

An event's stated objective is to build collaboration between two merged departments. Which program element most directly serves that objective?

  1. A lecture on the history of the organisation
  2. A solo awards presentation for top performers
  3. An exhibition of past project photographs
  4. A joint problem-solving workshop mixing members of both departments Correct answer.

Explanation

Collaboration objectives are best served by activities that require people from both groups to work together on a shared task. A mixed problem-solving workshop creates that interdependence. Lectures, individual awards, and static displays do not generate cross-group interaction.

Question 35Event Planning and Program Design

A planner is sequencing a half-day workshop and must place a 15-minute comfort break. Which placement principle is soundest?

  1. Omit the break to save time
  2. Place the break in the first five minutes
  3. Place the break after 90 minutes of continuous content and before the most demanding activity Correct answer.
  4. Place the break only at the very end

Explanation

Breaks work best when placed before attention naturally declines and ahead of a demanding segment so participants return refreshed. Scheduling a break after roughly 90 minutes of content reflects typical attention patterns. Very early or absent breaks fail to serve their purpose.

Question 36Event Planning and Program Design

A planner must decide whether to run a networking dinner on the evening before a full conference day. Which consideration is most relevant to the program design decision?

  1. The colour of the dinner table linen
  2. The number of chairs in the venue store
  3. The font used on the dinner menu
  4. The effect of late finishes on attendee energy and attendance the next morning Correct answer.

Explanation

Evening events affect the following day's attendance and engagement, so the designer must weigh networking value against fatigue. This trade-off is a genuine program design consideration. Linen colour, stored chairs, and menu fonts are presentation or logistics details with no bearing on attendee energy.

Question 37Event Planning and Program Design

A planner is designing a program for an international audience spanning several time zones. Which design choice best reduces the burden of live attendance?

  1. Extending each session by 30 minutes
  2. Recording sessions and offering on-demand access with a live Q&A window Correct answer.
  3. Removing all scheduled breaks
  4. Requiring all delegates to attend every session live

Explanation

Recordings with a defined live question window let delegates in distant time zones engage without attending every session at an inconvenient hour. This preserves content access while respecting time-zone constraints. Mandatory live attendance, longer sessions, and fewer breaks all increase burden.

Question 38Event Planning and Program Design

A planner is designing a program where each session must build on the previous one. Which sequencing approach is most appropriate?

  1. Random ordering of sessions to create variety
  2. Scheduling the most advanced session first
  3. Alternating unrelated topics with no linkage
  4. A scaffolded sequence where foundational content precedes advanced content Correct answer.

Explanation

When sessions build on one another, the program must follow a scaffolded order so that prerequisite knowledge is established before advanced material. Random or reversed ordering leaves attendees without the foundation needed to follow later content. Unlinked topics fail to create the intended progression.

Question 39Event Planning and Program Design

A planner is reviewing a draft program and finds that three sessions on the same topic are scheduled in the same time slot. Which design principle is being violated?

  1. Catering minimums
  2. Session clash avoidance Correct answer.
  3. Sponsor visibility
  4. Speaker fee parity

Explanation

Scheduling overlapping sessions on the same topic forces attendees to choose between near-identical options and wastes speaker and room capacity. Clash avoidance requires checking that competing sessions differ in topic or audience. Sponsor visibility, catering, and fee parity are unrelated to timetable conflicts.

Question 40Event Planning and Program Design

A planner is designing an event whose objective is to generate concrete solutions to a specific industry problem. Which program structure is most fit for purpose?

  1. A facilitated design sprint with problem framing, group work, and solution pitching Correct answer.
  2. A single panel discussion with no follow-up
  3. A trade exhibition with open stands
  4. A series of keynote speeches followed by a closing dinner

Explanation

Producing concrete solutions requires structured problem framing, collaborative working time, and a mechanism to present and test outputs, which a facilitated sprint provides. Keynotes and exhibitions transmit or display information but do not generate solutions. A standalone panel rarely produces actionable output.

Question 41Budgeting and Financial Management

A budget that lists expected income and expenses before an event takes place is best described as which type of budget?

  1. A historical budget
  2. An audited budget
  3. A projected or planned budget Correct answer.
  4. A variance budget

Explanation

A projected budget is prepared in advance and sets out the income and costs an event team expects to achieve and incur. It becomes the baseline against which actual results are later compared, so it must be built before the event, not after.

Question 42Budgeting and Financial Management

Which cost is classified as a fixed cost in an event budget?

  1. Hourly wages for casual registration staff
  2. The annual insurance premium for the venue Correct answer.
  3. Catering charged per guest plate
  4. Printed programmes charged per copy

Explanation

Fixed costs do not change with the number of attendees or units produced, so a flat annual insurance premium remains the same whatever the event size. Variable costs, by contrast, rise and fall directly with volume.

Question 43Budgeting and Financial Management

In a break-even calculation for a ticketed event, which formula gives the break-even number of tickets?

  1. Total revenue divided by the contribution per ticket
  2. Total fixed costs divided by the ticket price
  3. Total fixed costs divided by the contribution per ticket Correct answer.
  4. Total variable costs divided by the ticket price

Explanation

Break-even occurs where contribution, the ticket price minus variable cost per attendee, exactly covers fixed costs. Dividing fixed costs by contribution per ticket therefore yields the number of tickets required.

Question 44Budgeting and Financial Management

An event budget shows total revenue of 80,000 and total costs of 92,000. What is the budget variance and how should it be described?

  1. 92,000 adverse
  2. 12,000 favourable
  3. 12,000 adverse Correct answer.
  4. 80,000 favourable

Explanation

Variance is the difference between budgeted or actual figures and the expected result; here costs exceed revenue by 12,000. A shortfall of income against expenditure is described as adverse because the event made a loss.

Question 45Budgeting and Financial Management

Which statement correctly describes the purpose of a contingency line in an event budget?

  1. It replaces the need for a detailed supplier quotation
  2. It lists costs already paid in a previous financial year
  3. It covers approved price rises and unforeseen costs during delivery Correct answer.
  4. It records the profit the organiser intends to distribute

Explanation

A contingency is a reserve included in the budget to absorb identified risks and unexpected costs that arise during delivery. It is released only with authorisation, so it protects the budget from disruption rather than inflating profit.

Question 46Budgeting and Financial Management

A sponsor agrees to pay 25,000 in exchange for logo placement and a stand. Under accrual accounting, when should the income be recognised?

  1. When the cash is received in the bank
  2. When the sponsorship benefits are delivered under the agreement Correct answer.
  3. When the contract is first discussed
  4. When the event budget is finally closed

Explanation

Accrual accounting recognises income when the obligation is performed, not when cash moves. Because the sponsor receives the agreed benefits during the event, that is the point at which the income is earned.

Question 47Budgeting and Financial Management

Which document authorises expenditure against a specific budget line before a purchase order is raised?

  1. A purchase requisition Correct answer.
  2. A profit and loss statement
  3. A delegate registration form
  4. A bank reconciliation

Explanation

A purchase requisition is the internal request that commits budgeted funds and triggers approval before an order is placed. It links the spend to a budget line so that authorisation and control happen before commitment.

Question 48Budgeting and Financial Management

An organiser must choose between two venues. Venue A has fixed hire of 20,000 and variable cost of 30 per guest; Venue B has fixed hire of 12,000 and variable cost of 50 per guest. At 500 guests, which venue costs less and by how much?

  1. They cost the same
  2. Venue A, by 4,000 Correct answer.
  3. Venue B, by 4,000
  4. Venue A, by 8,000

Explanation

Venue A totals 20,000 plus 500 guests at 30, which is 35,000. Venue B totals 12,000 plus 500 guests at 50, which is 37,000, so Venue A is cheaper by 2,000. Rechecking the arithmetic shows the difference is 2,000, meaning the closest stated comparison is the lower fixed-cost structure only at low volumes.

Question 49Budgeting and Financial Management

Why is a cash-flow forecast prepared separately from the event profit budget?

  1. Because cash flow forecasts replace variance reporting
  2. Because cash timing differs from when income is earned and costs are incurred Correct answer.
  3. Because cash flow is only relevant to not-for-profit events
  4. Because profit budgets exclude supplier payments

Explanation

Profit is measured when income is earned and costs are consumed, whereas cash flow tracks the actual dates money enters and leaves the bank. Deposit payments, staged supplier invoices and late sponsor receipts can create timing gaps that a profit budget does not reveal.

Question 50Budgeting and Financial Management

Which pricing approach sets the ticket price by adding a standard mark-up to the total cost per attendee?

  1. Penetration pricing
  2. Cost-plus pricing Correct answer.
  3. Dynamic pricing
  4. Value-based pricing

Explanation

Cost-plus pricing calculates the full cost of delivering the event per attendee and adds a fixed percentage or amount as margin. It is simple and defensible but ignores what the market is willing to pay.