Certified Meeting Professional (CMP) Practice Exam

Question: 1 / 565

What types of costs vary based on the number of attendees?

Fixed costs

Variable costs

The costs that vary based on the number of attendees are classified as variable costs. These costs change in direct proportion to the number of participants involved in an event. For example, expenses such as catering, printed materials, seating arrangements, and some aspects of audiovisual equipment are directly affected by the number of attendees; if the number increases, so do these costs, and conversely, if the number decreases, the costs decline as well.

In contrast, fixed costs remain constant regardless of the number of participants. These might include venue rental fees or salaries for permanent staff, which do not fluctuate with attendance figures. Understanding the distinction between these types of costs is crucial for effective budget management and financial planning in event management.

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Administrative costs

Rental costs

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