Module 5 Quiz · Budget + Stakeholder Communication

5 questions · Pass mark: 4 / 5

Question 1 of 5

Budgets blow out for three recurring reasons: no padding, over-reliance on ticket sales, and hidden costs nobody thought to ask about. Given that, what is the correct principle for how a production should be funded?

Budget to break even before a single seat is counted, and treat strong ticket sales as upside — never bankroll the show on tickets you haven't sold yet. Build the whole budget on projected ticket income — if the show is good, the seats sell themselves. Build to the optimistic number with no contingency, so you don't scare the principal with a big request. Let the head of finance set the production budget like any other spreadsheet line, since they own the numbers.

Question 2 of 5

A parent asks "why is the ticket $35 — surely it should be $15 for a school show?" Which response is the best?

"Comparable community/regional pro theatre runs $40-$60 — we sit at $35 because the school subsidises the rest. Even at $35 we're not breaking even; the school carries the gap so students get a properly-resourced show. Happy to share the budget breakdown." "Tickets are $35 because that's what we decided. Running a show is expensive — you wouldn't understand the costs involved." "You're right, $35 is steep for a school show — I'll see if we can drop it to $15 for families who ask." "The price was set by the school office, so it's really not my call — you'd have to ask them."

Question 3 of 5

A contractor's quote includes "1 × Programming Day — $1,400" with no description. What's the first move?

Ask for a written scope breakdown of what's being programmed, by whom, and the deliverable Approve — programming days are standard Reject the line — programming is the SM's job Halve the rate and counter-offer at $700

Question 4 of 5

Your show came in 12% over budget after refunds for the night-3 cancellation (lighting failure). Which three things must appear in the post-mortem report to the principal?

The specific root cause of the failure, an actual-vs-budget breakdown showing exactly where the 12% went, and a prevention plan for next year (process / contractor / gear-spec change, with cost). Who was at fault, why it wasn't your responsibility, and a request that the overspend be written off quietly. A short apology, a note that "these things happen", and reassurance it'll be better next time. The total ticket revenue, the refund total, and a request for a bigger budget next year to cover risk.

Question 5 of 5

A company is delighted: they've bought an entire existing production (set, costumes, props) for about $10,000 against a $40,000 set budget, and believe they've saved most of it. The gear sits in three shipping containers on the far side of the country. Using the module's hidden-cost lesson, what's wrong with their thinking?

The $10k sticker isn't the real price. Nobody costed the freight (three containers railed across the country), local moves, costume washing/altering and storage — easily $30-40k, swallowing the whole set budget so the "bargain" costs more than building fresh. Rule: always ask the TOTAL cost to get it on stage and off again. It's the same lesson as the "size of the room" trap — what a set costs depends entirely on the room it has to fit. The real risk is that second-hand sets are usually worn out and won't look good under stage lights, so they'll have to rebuild anyway. Nothing is really wrong — $10k against $40k is a genuine win; the only improvement would be to haggle the seller down further. The main oversight is insurance — they should have insured the gear in transit, and that's the cost they forgot.

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Knowledge check — optional, for your own reflection (not graded)

These prompts are for your own thinking. They are not marked and have no effect on your pass mark or progression. Your notes save automatically to this device, signed in as you, so you can come back and review them later.

1. Take your most recent production budget. Was it built to break even before counting ticket sales — or did it quietly rely on a full house? Where is the padding, and is it enough? saved ✓

2. Write out the line you'd actually say to a parent who pushes back on ticket price. What's your comparison anchor, and can you back it with a real local figure? saved ✓

3. Think of a "bargain" you've been tempted by (a cheap set, hired gear, a donated lot). Run the TOTAL-cost rule on it — freight, moves, alterations, storage. Was it really cheaper? saved ✓