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Eric Segal has just purchased the film studio of a movie company that specializes in...

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Accounting

Eric Segal has just purchased the film studio of a movie company that specializes in love stories. 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. Segal does not like the former movie-budget concept and desires to establish a formal cost estimation system. What are alternative methods of cost estimation that could be used in the movie making system? Briefly describe each method.

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