What percentage is associated with above-the-line costs according to the material?

• A. 60%
• B. 40%
• C. 90%
• D. 10%

Answer: (A)

In budgeting for media projects, above-the-line costs cover the major creative and development fees—the salaries and upfront payments to key people like writers, directors, producers, and principal actors. The material treats these as about 60% of the total budget, with the remaining 40% going to below-the-line costs such as production expenses, crew, equipment, locations, and post-production.

This 60/40 split reflects how the top-tier talent costs often dominate early and stay relatively fixed, while the day-to-day production costs scale more with the scope of the shoot. For example, on a $2 million project, above-the-line would be about $1.2 million and below-the-line about $0.8 million.

So 60% aligns with the material’s guidance. The other percentages don’t fit that rule-of-thumb (40% would invert the shares, 90% would leave too little for production costs, and 10% underestimates the share of creative talent).