What Is the Best Way to Approach the Preparation of a Production

question 7

Multiple Choice

What is the best way to approach the preparation of a production budget?

• A) include expenses that might occur when things go wrong
• B) make the budget attractive by underestimating some expenses
• C) protect yourself against cost overruns by overestimating all expenses by 10 percent
• D) be realistic but add a contingency of at least 15 percent
• E) leave blank any expenses likely to change before the production is completed

---

Definitions:

Per Se Violations

In law, actions or situations that are inherently illegal and do not require further proof of illegality or intent to enforce penalties.

Acceptable Practices

Established norms or standards of behavior that are considered to be appropriate and acceptable within a specific field or context.

Business Practices

The methods, strategies, and procedures employed by companies in the design, production, marketing, and sale of their products and services.

Sherman Act

A United States antitrust law passed in 1890 that outlaws monopolistic practices and promotes competition.