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

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Definitions:

Budget Constraint

The limitation on the consumption choices of an individual or household due to limited income and the prices of goods and services.

Budget Constraint

A budget constraint outlines the combinations of goods and services that a consumer can purchase given their income and the prices of those goods and services.

DVDs

Digital Versatile Discs, a type of optical storage media used for video, audio, and data storage, now surpassed by digital streaming and download technologies.

CDs

Compact Discs, a digital optical disc data storage format used for storing audio, video, and data.