Netflix Has Been Regarded as One of the Most Innovative

question 24

Multiple Choice

Netflix has been regarded as one of the most innovative and creative companies ever. Which of the following add a significant impact on lowering Netflix's overall costs?

• A)moving to a subscription based service
• B)purchasing movies for their library based on contracts that provided producers a percent of revenues based on movies viewed
• C)producing original programming
• D)developed proprietary recommendation system

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Definitions:

Budgeted Income Statement

A financial statement that shows projected revenues, costs, expenses, and net income for a specific period of time.

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period of time, often used to assess liquidity.

Budgeted Sales

Projected sales figures used in financial planning and budgeting that estimate future sales during a specific period.

Budgeted Purchases

An estimate of the total purchases a business plans to make during a certain time period.