### Budget to a cost estimation movie making system

Assignment Help Accounting Basics
##### Reference no: EM13138107

Roger Moon has just purchased the film studio of a movie company that specializes in comedies. 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/her to make a movie within budget. Mr. Moon does not like the former movie-budget concept and desires to establish a formal cost estimation system.

Required:

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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