Use this expression to comment on someone's suggestion:

A: Why don't we go out for pizza?

B: That sounds like fun.

A: Let's call Adele and see if she'd like to help out.

B: That sounds like a great idea.

A: What about 127 Hours? That's the movie about a climber who gets stuck under a rock and ends up having to cut his own arm off.

B: That sounds a little too intense for me.