Movie Profitability Is Determined by Which of the Following

question 2

Multiple Choice

Movie profitability is determined by which of the following?

• A)box office receipts
• B)home video sales
• C)the budget for making the film
• D)all of these

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Definitions:

Variable Manufacturing Overhead

These are manufacturing costs that vary in total directly and proportionately with changes in the production volume, such as indirect materials and utilities.

Direct Labor-Hours

The cumulative working hours of employees directly engaged in manufacturing activities.

Fixed Manufacturing Overhead

Costs in manufacturing that do not change with the level of production, such as salaries of supervisors and rent.

Job-Order Costing System

An accounting method that assigns costs to specific jobs or batches of products, capturing the direct materials, direct labor, and manufacturing overhead for each.