In 2007, the Movie Transformers Generated About $27

question 88

Multiple Choice

In 2007, the movie Transformers generated about $27.8 million on its opening day. In 1995, Batman Forever generated $20 million on its opening day. If the CPI in 2005 was 100, the CPI in 1995 was 78.0, and the CPI in 2007 was 106.2, ________ is the larger single-day grossing movie, with about ________ million in revenues in 2005 dollars.

• A) Transformers; $27.8
• B) Batman Forever; $35.6
• C) Transformers; $26.2
• D) Transformers; $35.6
• E) Batman Forever; $27.8

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Definitions:

Financial Accounting Reports

Formal documents that communicate an organization's financial performance and position to external stakeholders, including income statements and balance sheets.

GAAP

Generally Accepted Accounting Principles; a set of rules and standards for financial reporting used in the United States.

Prime Costs

The combined total of direct labor and direct materials cost incurred in the manufacturing of products.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are an integral part of the finished product.