CCP CCP Budget and Resource Management 1 — Questions and Answers
Question 1: What is the primary purpose of a production budget in a creative project?
- To track all anticipated costs and allocate funds across departments (Correct answer)
- To list the names of all crew members
- To document the shooting schedule
- To outline the director's creative vision
Correct answer: To track all anticipated costs and allocate funds across departments
A production budget identifies and allocates all anticipated costs across departments to ensure the project is financially viable.
Question 2: Which budgeting method bases each line item on justified needs rather than prior-year spending?
- Incremental budgeting
- Zero-based budgeting (Correct answer)
- Rolling forecast budgeting
- Top-down budgeting
Correct answer: Zero-based budgeting
Zero-based budgeting requires every expense to be justified from scratch rather than carrying forward previous allocations.
Question 3: A contingency fund in a production budget is typically set at what percentage of total costs?
- 1–2%
- 5–10% (Correct answer)
- 20–25%
- 30–35%
Correct answer: 5–10%
Industry standard contingency funds are typically 5–10% of the total budget to cover unforeseen expenses.
Question 4: What is 'above-the-line' cost in a production budget?
- Post-production expenses only
- Costs for key creative talent such as writers, directors, and actors (Correct answer)
- Equipment rental fees
- Location permit fees
Correct answer: Costs for key creative talent such as writers, directors, and actors
Above-the-line costs refer to expenses for principal creative talent including writers, directors, producers, and leading cast.
Question 5: When a producer needs to track actual spending against the approved budget in real time, which document is used?
- Call sheet
- Cost report (Correct answer)
- Shot list
- Treatment
Correct answer: Cost report
A cost report compares actual expenditures to budgeted amounts, allowing producers to monitor financial health throughout production.
Question 6: Resource leveling in project scheduling is used to:
- Increase the number of shooting days
- Resolve over-allocation by adjusting task timing without changing scope (Correct answer)
- Reduce the number of actors needed
- Eliminate post-production phases
Correct answer: Resolve over-allocation by adjusting task timing without changing scope
Resource leveling adjusts the project schedule to address over-allocated resources without changing the overall project scope.
CCP CCP Budget and Resource Management 1
What is the primary purpose of a production budget in a creative project?