Project Cost Management Paper 2022

PROJECT COST MANAGEMENT
Name
Subject
Date

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Executive summary
The budget proposal developed relates to an event that is to take place in Singapore. The
event is essentially a 3 -day International conference in Singapore to be held in March 2020.
The event is expected to be graced three high-profile international keynote speakers where
each one of the speakers will be designated a particular day. The rest of the programme will
be filled with speakers from industry and academia presenting papers on Project Management
(Bowdin, Johnny, William, Rob and Mcdonnell 2015). It is noted that conference delegate
accommodation and transport will be at the cost of the delegates. The aim of the conference
is to provide the international community with project management knowledge and for an
organisation to make a minimum 10 % profit. A conference dinner including entertainment
shall be organised on the evening of the second day. The expected attendance is expected to
be 250 delegates (Proctor 2006). The overall expenditure for the event will be $58,200.00.
The income expected to be generated will is projected to be $125,500.00 and hence the net
cash flow will be $67,300.00.
Conclusions
The projections from the budget indicate the organisers will organise a successful event. The
cash flow projections indicate that the organisers hope to have a positive net cash flow of
$67,300.00. Similarly, the cash flow projections suggest that the organisers hope to have a
total revenue of $ 125,500.00 while they expect a total expenditure of $58,200.00. Should the
event organisers stick to the projection as made, it is likely that event will be a hinge success.
It is recommended that the team invests training, information days as well as seminars to
ensure that better performance is attained for future events.
Recommendations

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It is recommended that the organisers can liaise with local universities as well as any other
providers concerning content and venues. This would help reduce on the costs associated
with hiring event venues and equally, it would ensure that well researched content is
delivered
It is further recommended that the organisers should consider facilitating the accommodation
costs of the delegates to guarantee control and efficiency as well appropriate planning. Some
event delegates might fail to be present at the event on account for failure to afford the cost of
accommodation and transport associated with attending the event.
It is also recommended that that organisers reduce on the costs for the exhibitors to attract
more revenue. The event organisers should focus on attracting more exhibitors by reducing
on the pricing of their packages.
List of the contents of the estimate and the respective costs.
The site includes accommodation and hall fees of $5,000. The hall shall be the event venue
and it is projected to be hired at a cost of $5000. It is this hall that will be used to host the
event. Among the other expenditures to be incurred are the facilitations for the employees
and staff at the site. There are to staff and employees at the site and these are projected to be
paid a total of $400 and thereby making a total of $4,000.00(Cliche, Budget, Côté and Savard
2012). The other expenditure that the organisers expect to incur include equipment and
machinery and this is projected to include a brand new computer and printing equipment to
be purchased at a total cost of $3,000.00. The organisers also expect to purchase some
additional chairs and tables all at a cost of $500.00. To ensure that the event is appropriately
light up to match the occasion, a portion of the budget will be put towards meeting the
decoration of the event. The organisers will purchase decoration flowers at a cost of $200.00,
10 candles each at $20 making it a total of $100.00 for the candles alone (Drury 2008). The

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organisers will also invest $1,000.00 to cater for the costs associated with the lighting system
while stationery is earmarked at $500.00 making a total of $1,900.00(Goldblatt, 2013). The
organisers will also invest in graphics work for the purposes of advertisements and
promotion. A total of $2,000.00 will be spent on graphics specialists while photocopying and
printing will cost the organisers a total of $1,000.00. Postage and stamp is estimated at
$300.00 making a total of $3,300.00. It also includes transportation costs valued at $1,000.00
while fax costs are estimated at $100.00. In term of the cost of Refreshments and Food/
feeding, the event organisers will expect and plan for 250 guests where each guest is expected
to consume $20 making it $5,000.00 for the entire delegates (Varshney and Maheshwari
2013). The budget on the drinks is projected to be $2,000.00 while Staff and associated
gratuities are budgeted at $10,000.00 over the course of event planning and completion. In
terms of the Performers and entertainments, it is projected that the organisers will incur a
total of $3,000.00 to cater for the artist that will be hired to entertain the guests (Schivinski,
Langaro and Shaw, 2019). In the same manner, speakers’ allowances are projected at
$10,000.00 where each of the speakers is expected to be paid $3300 for the three days they
will be officiating at the conference. It is also projected that the organisers will incur an
expenditure of $5,000.00 on the prizes and plagues while gifts are expected to cost $2000
(Smith and Thomas, 2014).
The projected gross income is anticipated to be $125,500.00. This revenue is expected to be
generated through the admission of 250 delegates where each should purchase a ticket worth
$100. This figure is arrived at through multiplying 250 delegates*$100 for each delegate’s
ticket. In the other income sources put forward by the organisers include the advertisements
within the programme (O’Sullivan 2013). It is projected that two covers with each projected to
be priced at $5000 will and hence a total revenue of $10,000 is to be earned. In the same
manner, there will be one half page with each priced at $1000 and hence a projected revenue

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of $1000 is expected. The organisers also expect to fetch revenue from one quarter-page
priced at $500.00 and thereby leading to a projected revenue of $500. The organisers also
expect to earn from exhibition over the course of the event. 12 Large booths with each at
$2,000.00 and thereby $24,000.00 shall be attained. 20 Med booths with each at $1,000.00 is
expected to fetch $20,000.00 in terms of the potential revenue to be generated. In the same
manner, the organisers will also expect 10.00 for the Small booths with each valued at
$500.00 and hence fetching $5,000.00. In terms of item sales, it is expected that 300 books
Items will be sold at $50.00 which will in end fetch a total revenue of $15,000.00. In the
same manner, company expects to sale 500 T shirts Items with each priced at $50.00 and
hence fetching a total of $25,000.00 in terms of revenue. Overall, the income is projected to
be $125,500.00 while the expenses are projected at $58,200.00(Ramsborg, Miller, Breiter,
Reed and Rushing 2008). The total profit for the event is projected to be $67,300.00. In terms
of the cash flows, the total cash projected to be received from general operations is equal to
$125,500.00. The total expenditures are projected to be $ 58,200.00 which puts the projected
net cash flow at $67,300.00.
A detailed budget from the 1st March 2019 until final project completion
Budget for the International conference in Singapore (Expenditure)
Total Expenses $58,200.00
Site/ accommodation Estimated
cost Refreshments and drinks Estimated
Accommodation and hall
fees $5,000.00 Food/ feeding $5,000.00
Site staff and employees $4,000.00 Hard and soft drinks $2,000.00
Equipment and machinery $3,000.00 Staff and associated
gratuities
$10,000.0
0
Furniture $500.00 Total $17,000.0

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0
Total $12,500.00
Program costs Estimated
Decorations and
beautification Estimated Performers and
entertainments $3,000.00
The flowers $200.00 Speakers allowances $10,000.0
0
Candles $100.00 Travel costs $0.00
Lights $1,000.00 Hotel costs $0.00
The balloons $100.00 Others $2,000.00
Stationery $500.00 Total $15,000.0
0
Total $1,900.00
Prizes Estimated
Publicity and promotion Estimated Plaques and Trophies $5,000.00
Graphical works $2,000.00 Gifts $2,000.00
Photocopying and printing $1,000.00 Total $7,000.00
Postage and stamp $300.00
Total $3,300.00
Miscellaneous expenses Estimated
Telephones $400.00
Transportation costs $1,000.00
Fax $100.00
Total costs $1,500.00

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Budget for the International conference in Singapore(Income)
Estimated
Gross Income $125,500.00
Admissions
Estimated Estimated
250 Adults @ $100.00 $25,000.00
$25,000.00
Advertisements in program
Estimated Estimated
2 Covers @ $5,000.00 $10,000.00
1 Half-pages @ $1,000.00 $1,000.00
1 Quarter-pages @ $500.00 $500.00
$11,500.00
Exhibitors
Estimated Estimated
12 Large booths @ $2,000.00 $24,000.00
20 Med. booths @ $1,000.00 $20,000.00
10.00 Small booths @ $500.00 $5,000.00
$49,000.00
item Sale
Estimated Estimated
300 Books Items @ $50.00 $15,000.00
500 T shirts Items @ $50.00 $25,000.00
$40,000.00
Summary
Estimated
Income $125,500.00
expenses $58,200.00
Total profit (or loss) $67,300.00

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A graph showing estimated income and expenditures for the event
Estimated
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
Income expenses

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A detailed cash flow indicating all costs and revenues from 1st March 2019 to the end of
the project
Cash Flow statement
Pro Forma Cash Flow
Cash Received from operations Mar-19
Cash Sales $ 125,500.00
Subtotal Cash from Operations $ 125,500.00
Expenditures
Accommodation and hall fees $ 5,000.00
Site staff and employees $ 4,000.00
Equipment and machinery $ 3,000.00
Furniture $ 500.00
The flowers $ 200.00
Candles $ 100.00
Lights $ 1,000.00
The balloons $ 100.00
Stationery $ 500.00
Graphical works $ 2,000.00
Photocopying and printing $ 1,000.00
Postage and stamp $ 300.00
Telephones $ 400.00
Transportation costs $ 1,000.00
Fax $ 100.00
Food/ feeding $ 5,000.00
Hard and soft drinks $ 2,000.00
Staff and associated gratuities $ 10,000.00
Performers and entertainments $ 3,000.00
Speakers allowances $ 10,000.00
Travel costs $ -
Hotel costs $ -
Others $ 2,000.00
Plaques and Trophies $ 5,000.00
Gifts $ 2,000.00
Total expenditures $ 58,200.00
Net cash flow $ 67,300.00
Conclusions

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The projections from the budget indicate the organisers will organise a successful event. The
cash flow projections indicate that the organisers hope to have a positive net cash flow of
$67,300.00. Similarly, the cash flow projections suggest that the organisers hope to have a
total revenue of $ 125,500.00 while they expect a total expenditure of $58,200.00. Should the
event organisers stick to the projection as made, it is likely that event will be a hinge success.
It is recommended that the team invests training, information days as well as seminars to
ensure that better performance is attained for future events. Organisers can liaise with local
universities as well as any other providers concerning content and venues. Organisers should
consider facilitating the accommodation costs of the delegates to guarantee control and
efficiency as well appropriate planning. Some event delegates might fail to be present at the
event on account for failure to afford the cost of accommodation and transport associated
with attending the event. It is also important that organisers reduce on the costs for the
exhibitors to attract more revenue.

10
References
Bowdin, G. Johnny, A. William, O. Rob, H. Ian Mcdonnell, 2015. Events Management.
Cliche, P. Budget, L. Côté and J.-F. Savard 2012. Encyclopedic Dictionary of Public
Administration, 2012.
Drury, C. 2008. Management and Cost Accounting, 7th Edition; London, Cengage Learning,
2008.
Goldblatt, J. 2013. Twenty-First Century Global Event Management. The Wiley Event
Management Series.
O'Sullivan, A. 2013. Sheffrin, Steven M. Economics: Principles in Action. Upper Saddle
River, New Jersey 07458: Pearson Prentice Hall.
Proctor, R.2006. Managerial accounting for business decisions; Essex: Pearson Education,
2006; p. 420
Ramsborg, G.C.; B Miller, D Breiter, B.J. Reed and A, Rushing. 2008. Professional Meeting
Management: Comprehensive Strategies for Meetings, Conventions and Events.
Schivinski, B. Langaro, D. Shaw, C. 2019. The Influence Of Social Media Communication
On Consumer’s Attitudes And Behavioral Intentions Concerning Brandsponsored Events.
Smith, R. W. and Thomas, D.2014. Lynch. Public Budgeting in America. 5th Edition.
Pearson; Upper Saddle River, New Jersey. 37

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Varshney, R.L.; K.L. Maheshwari 2013. Manegerial Economics. 23 Daryaganj, New Delhi
110002: Sultan Chand & Sons. 2013.