Joe Paparazzi Has Just Purchased the Film Studio of a Movie

Essay

Joe Paparazzi has just purchased the film studio of a movie company that specializes 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. Paparazzi 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?