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how do we charge that motion picture cost to revenue in today rsquo s high tech high 692402

How Do We Charge that Motion Picture Cost to Revenue?

In today’s high tech, high cost entertainment industry, motion pictures often have costs in the tens of millions of dollars. Of course, it is hoped that these movies will be box office winners and that the revenues will exceed the cost outlay. With first runs, reruns, DVD sales and rentals, and so forth, it has become increasingly difficult to determine how the initial cost should be amortized against the revenue. Considering this industry and its characteristics, what amortization method would you suggest for these movie production costs?

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