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Once a preliminary schedule and crew plan are in place, the producer can begin the task of building the budget. There are two levels to a budget: detail and summary. The summary is usually no more than two pages long, while the detailed budget lists each and every line item and the specific costs associated with it. The summary groups the line items into major categories to illustrate simply where the money is allocated from a macro point of view. On the summary sheet for example, there is one line devoted to the "storyboard" category and next to it, there is a sum total of costs for this phase of production. The detail budget is further divided into storyboard supervisor, storyboard artist(s), storyboard clean-up artist(s), overtime, materials and supplies, and fringe benefits. Each item has its own separate dollar amount listed, with the sum total matching the number under "storyboard" in the summary budget.

Most budgets are divided into two sections: above and below the line. The above-the-line numbers are commonly those numbers based on contracts. Such numbers include rights payments, options, royalties and script fees. Also included are deals and payments to be made to producers, directors and writers as well as any other key talent associated with the project (such as actors). These figures are considered the creative costs of the production. The below-the-line items are all other monies required to produce the project, such as the crew, equipment, subcontractors and so on. Such expenses are generally fixed in terms of what the production itself will cost in order to be completed. The distinction is made between the two categories because some of the above-the-line costs may be deferred. Above-the-line talent often participate in backend profits or have points. It also makes it easier for executives to review the budget and easily see the differences between the talent and actual production costs.

The producer also needs to establish what the fringe benefits or fringes will be for the project so that they can assign these costs throughout the budgeting process. Fringes are those costs above and beyond the actual contracted or purchase price of an item. Standard items are guild and/or union pensions, health and welfare contributions, FICA, employer matching contributions, Medicare, unemployment taxes, etc. Fringe rates must be paid and range between 20 to 30 percent of labor costs depending on the studio. The percentage charged for each individual item varies depending on the location of the studio, benefits provided and whether it is union or non-union.