The Force Awakens And The Truth Behind Hollywood Accounting Analysis

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Hollywood accounting is not as easy as any other accounting performed by CPAs. Based on the article “The Force Awakens and the Truth Behind ‘Hollywood Accounting’”, it explains how a movie such as Star Wars makes millions of dollars during its first weekend screening but does not earn enough to break even a profit. It is surprising how the producers and directors were planning to sue the studio for that manner. The article made it obvious that people working in the studio have minor knowledge in accounting; it could be a reason for the lack of profit the movie is earning. They were very poor in budgeting for marketing. They also focused on contracts they had with the actors. If ever the agreement was not executed, it could have cost more money

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