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Norman Bates has just purchased a movie company that specializes in thrillers. He found that the company did not try to estimate the cost of making a movie. Instead, it just gave the producer a budget and told him or her to make a movie within budget. Mr. Bates does not like the former movie-budget concept and desires to establish a formal cost estimation system.
What are some of the potential problems that may be encountered in changing from a budget to a cost estimation movie making system?
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