Maverick Productions organizes rock concerts. Last year, the company rented the local sports arena for a rock concert that included the Rolling Rocks. The concert was a big success and Maverick Productions made $150,000 on the concert. This year, Maverick Productions is planning to bring the Rolling Rocks back to town for another concert.

The company plans to rent the professional baseball stadium, which is larger, but it still plans to use the same ticket agency and vendors. Maverick Productions has detailed accounting records of the revenues and costs of the previous Rolling Rocks concert and would like to use these accounting records to make plans for the concert this year.

a. What are some of the advantages and disadvantages of using the past concert accounting records to make estimates of the costs and benefits of the concert this year?

b. Are there ways of adjusting the past accounting records to make them better predictors of costs and benefits?