EPMS

Costing, Procurement and Cash flow

Contents

Introduction
Cost classification

Direct/indirect
Unique and standard
Fixed and variable
One off or recurring
Opportunity Costs

Estimating

Estimating Methods
Top down or analogous estimating
Bottom up
Parametric
When to estimate
Contingency
Explanations

Cost control

Bookkeeping - cost control codes
Event project Life Cycle (cash flow)
Mark-up and passing on discounts
Problems

Procurement pro
Quotes
- Team
Conclusion

Introduction

Costing is a term that is common in project based industries and , like so many of the terms used in this text, is slowly becoming the accepted language of events. Cost management is one of the most important areas and the least studied by event managers or their staff. Perhaps this explains the continual problem between the events and finance departments of some companies. The event team uses terms that are foreign to your average accountant. This chapter aims to give the event management the necessary terms and methodology to both systematically control the costs of an event and be able to talk to 'accounts'.

Costing is the estimation of event costs, establishing a baseline or budget, controlling those costs, documenting and reporting this process.

The first step is to understand the various ways that costs can be classified.

Cost classification

Direct/indirect

Perhaps the most common division ....

Full information on this essential area of event management is found on the EPMS CDROM

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