A production budget estimates all costs for making a film. What are its two main components?

• A. Above-the-line costs and below-the-line costs.
• B. Marketing and distribution costs.
• C. Only post-production costs.
• D. Salaries for all cast members.

Answer: (A)

The two broad categories that structure a production budget are above-the-line costs and below-the-line costs. Above-the-line covers the big creative leadership and talent investments you lock in early—producers, directors, writers, and the principal cast. Below-the-line includes everything else needed to shoot and finish the film—crew salaries, equipment, locations, set construction, costumes, post-production, and other production expenses.

This framing is why the correct choice is the best: it splits costs into the major, pre-determined creative commitments versus the remaining production and post-production work, giving a complete picture of what it takes to make the film before marketing and distribution come into play. Marketing and distribution costs are separate and occur after production. Focusing only on post-production leaves out the large upfront and ongoing production costs, and restricting to cast salaries is too narrow to describe the whole budget.