Which statement is true about negative costs?

Which statement is true about negative costs?

• A. Marketing budgets after release.
• B. Revenue after taxes.
• C. The actual production costs.
• D. Post-release costs.

Answer: (C)

In film accounting, negative costs refer to the production costs—the actual money spent to shoot, edit, and complete the movie. This term captures the core outlay of bringing a film to completion, not money tied to marketing, taxes, or post-release activities. That’s why the statement about negative costs being the actual production costs is the best fit. Marketing budgets after release, revenue after taxes, and post-release costs are separate categories and don’t describe negative costs.

In film accounting, negative costs refer to the production costs—the actual money spent to shoot, edit, and complete the movie. This term captures the core outlay of bringing a film to completion, not money tied to marketing, taxes, or post-release activities. That’s why the statement about negative costs being the actual production costs is the best fit. Marketing budgets after release, revenue after taxes, and post-release costs are separate categories and don’t describe negative costs.