The Art of Budgeting for Grant Success

What is a "line item" most likely to refer to?

• The main character in a movie or play

• An individual item or category in a budget, such as "costumes" or "sound equipment"

• Individual cost in a salary sheet.

• A group of items in the balance sheet or financial statements of an organization

In the arts and entertainment industry, what might be considered a "step cost"?

• The cost of musicians' salaries for a one-night concert

• The cost of renting additional sound equipment when adding extra stages to a music festival

• The constant cost of advertising for an art exhibition

• The cost of painting supplies for a mural project

In the production of a theater play, what type of cost is the salary of the stage manager?

• Fixed cost

• Variable cost

• Step cost

• Mixed cost

Answer explanation

• The stage manager's salary is fixed as it does not directly vary with the number of plays produced.

You work for an art gallery, and you are budgeting for one of the many art exhibitions. Which of the following would be considered a direct cost?

• Rent for the gallery space

• Office supplies

• Insurance for the event

• Salary of the event coordinator

Answer explanation

Rent for the gallery space is a direct cost because it directly supports the art exhibition. The other options are indirect costs that may be necessary but do not directly contribute to the exhibition itself.

For a music festival, what type of cost is the payment made to musicians per performance?

• Fixed cost

• Variable cost

• Step cost

• Mixed cost

Answer explanation

• Payment to musicians is a variable cost because it depends on the number of performances at the festival.

In a theater production, which of the following can be categorized as a direct cost?

• Costumes and props

• Property insurance for the theater building

• Administrative salaries

• Concession stand revenue

Answer explanation

Costumes and props are direct costs as they are essential for the production and directly related to the show. The other options are indirect costs or unrelated to the production.

You're budgeting for a film production. What might be considered an indirect cost?

• Equipment rental

• Screenwriter's fees

• Craft services for the cast and crew

• Film distribution costs

Answer explanation

Film distribution costs are typically considered indirect costs because they come after the production phase and are related to getting the finished product to the audience. The other options (a, b, c) are more directly tied to the film production process.

You are managing a graphic design project. What could be an example of an indirect cost in this context?

• Graphic designer's salary

• Software licenses

• Utilities for the office

• Art supplies

Answer explanation

Utilities for the office are indirect costs in the context of a graphic design project. While they support the work environment, they do not directly relate to the specific project. The other options are typically direct costs related to the project.

• In the context of organizing a music concert, what type of cost is the cost of hiring security personnel for the event?

• Fixed cost

• Variable Cost

• Step cost

• Indirect cost

Answer explanation

The cost of hiring security personnel may be a step cost if additional security is only required when a certain threshold (e.g., audience size) is reached.

You're organizing a music concert. Which of the following is an indirect cost?

• Musicians' fees

• Marketing expenses

• Stage lighting equipment

• Ticket sales revenue

Answer explanation

Marketing expenses are indirect costs. While they are necessary for promoting the concert, they do not directly support the performance (i.e., the music concert). The other options are typically direct costs related to the event itself.