Roger Moon has just purchased the film studio of a movie company that specialises 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 this 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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Question

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The Answer of Roger Moon has just purchased the film studio of a movie company that specialises 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 this 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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Roger Moon Has Just Purchased the Film Studio of a Movie