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A PROJECT REPORT ON ROCK MUSIC CDCOMPANY

SUBMITTED TO: Prof

Submiited By:

PAWAN KUMAR

IILM-GSM

GREATER NOIDA


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COST ACCOUNTING

Cost accounting is an approach to evaluating the overall coststhat are associated with conducting business. Generally basedon standard accounting practices, cost accounting is one of thetools that managers utilize to determine what type and howmuch expenses is involved with maintaining the currentbusiness model. At the same time, the principles of costaccounting can also be utilized to project changes to thesecosts in the event that specific changes are implemented.

When it comes to measuring how wisely company resources arebeing utilized, cost accounting helps to provide the data relevantto the current situation. By identifying production costs andfurther defining the cost of production by three or moresuccessive business cycles, it is possible to note any trendsthat indicate a rise in production costs without any appreciablechanges or increase in production of goods and services. Byusing this approach, it is possible to identify the reason for thechange, and take steps to contain the situation before bottom

line profits are impacted to a greater degree.

Product development and marketing strategies are alsoinformed by the utilization of cost accounting. In terms ofproduct development, it is possible to determine if a newproduct can be produced at a reasonable price, considering thecost of raw materials and the labor and equipment necessary toproduct a finished product. At the same time, marketingprotocols can make use of cost accounting to project if theproduct will sell enough units to make production a viable

option.

Cost accounting is helpful in making a number of businessdecisions. By weighing the actual costs versus the anticipatedbenefit, cost accounting can help a company to avoid launchinga product with no real market, prevent the purchase ofunnecessary goods and services, or alter the current operational
http://www.wisegeek.com/what-is-a-business-model.htmhttp://www.wisegeek.com/what-is-a-business-model.htm


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model in a manner that will decrease efficiency. Whether utilizedto evaluate the status of a department within the company or asa tool to project the feasibility of opening new locations orclosing older ones, cost accounting can provide important datathat may impact the final decision.

STANDARD COST ACCOUNTING

In modern cost accounting, the concept of recording historical costs was

taken further, by allocating the company's fixed costs over a given

period of time to the items produced during that period, and recording

the result as the total cost of production. This allowed the full cost of

products that were not sold in the period they were produced to be

recorded in inventory using a variety of complex accounting methods,which was consistent with the principles ofGAAP (Generally Accepted

Accounting Principles). It also essentially enabled managers to ignore

the fixed costs, and look at the results of each period in relation to the

"standard cost" for any given product.

For example: if the railway coach company normally produced 40

coaches per month, and the fixed costs were still $1000/month, then

each coach could be said to incur an overhead of $25 ($1000/40). Adding

this to the variable costs of $300 per coach produced a full cost of $325

per coach.This method tended to slightly distort the resulting unit cost, but in

mass-production industries that made one product line, and where the

fixed costs were relatively low, the distortion was very minor.

For example: if the railway coach company made 100 coaches one

month, then the unit cost would become $310 per coach ($300 +

($1000/100)). If the next month the company made 50 coaches, then the

unit cost = $320 per coach ($300 + ($1000/50)), a relatively minor

difference.

An important part of standard cost accounting is a variance analysis

which breaks down the variation between actual cost and standard costsinto various components (volume variation, material cost variation,

labor cost variation, etc.) so managers can understand why costs were

different from what was planned and take appropriate action to correct

the situation.
http://en.wikipedia.org/wiki/GAAPhttp://en.wikipedia.org/wiki/Business_process_overheadhttp://en.wikipedia.org/wiki/Variance_analysis_(accounting)http://en.wikipedia.org/wiki/GAAPhttp://en.wikipedia.org/wiki/Business_process_overheadhttp://en.wikipedia.org/wiki/Variance_analysis_(accounting)


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MUSIC

Music is an art form whose medium is sound organized in time.

Common elements of music are pitch (which governs melody andharmony), rhythm (and its associated concepts tempo, meter, and

articulation), dynamics, and the sonic qualities oftimbre and texture.

The creation, performance, significance, and even the definition of

music vary according to culture and social context. Music ranges from

strictly organized compositions (and their recreation in performance),

through improvisational music to aleatoric forms. Music can be divided

into genres and subgenres, although the dividing lines and relationships

between music genres are often subtle, sometimes open to individual

interpretation, and occasionally controversial. Within "the arts", music

may be classified as a performing art, a fine art, and auditory art.

To people in many cultures, music is inextricably intertwined into their

way of life. Greek philosophers and ancient Indians defined music as

tones ordered horizontally as melodies and vertically as harmonies.

Common sayings such as "the harmony of the spheres" and "it is music

to my ears" point to the notion that music is often ordered and pleasant

to listen to. However, 20th-century composer John Cage thought that

any sound can be music, saying, for example, "There is no noise, onlysound.According to musicologist Jean-Jacques Nattiez, "the border

between music and noise is always culturally definedwhich implies

that, even within a single society, this border does not always pass

through the same place; in short, there is rarely a consensus. By all

accounts there is no single and interculturaluniversal concept defining

what music might be, except that it is 'sound through time.

HISTORY

The development of music among humans must have taken place

against the backdrop ofnatural sounds such as birdsong and the sounds

other animals use to communicate. India has one of the oldest musical

traditions in the worldreferences to Indian classical music (marga)

can be found in the ancient scriptures of the Hindu tradition
http://en.wikipedia.org/wiki/Arthttp://en.wikipedia.org/wiki/Media_(arts)http://en.wikipedia.org/wiki/Soundhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Pitch_(music)http://en.wikipedia.org/wiki/Melodyhttp://en.wikipedia.org/wiki/Harmonyhttp://en.wikipedia.org/wiki/Rhythmhttp://en.wikipedia.org/wiki/Tempohttp://en.wikipedia.org/wiki/Meter_(music)http://en.wikipedia.org/wiki/Articulation_(music)http://en.wikipedia.org/wiki/Dynamics_(music)http://en.wikipedia.org/wiki/Timbrehttp://en.wikipedia.org/wiki/Texture_(music)http://en.wikipedia.org/wiki/Performancehttp://en.wikipedia.org/wiki/Definition_of_musichttp://en.wikipedia.org/wiki/Definition_of_musichttp://en.wikipedia.org/wiki/Aleatoryhttp://en.wikipedia.org/wiki/Genrehttp://en.wikipedia.org/wiki/Genre#subgenrehttp://en.wikipedia.org/wiki/The_artshttp://en.wikipedia.org/wiki/Performing_artshttp://en.wikipedia.org/wiki/Fine_arthttp://en.wikipedia.org/wiki/Greek_philosophyhttp://en.wikipedia.org/wiki/John_Cagehttp://en.wikipedia.org/wiki/Noisehttp://en.wikipedia.org/wiki/Jean-Jacques_Nattiezhttp://en.wikipedia.org/wiki/Natural_soundshttp://en.wikipedia.org/wiki/Indian_classical_musichttp://en.wikipedia.org/wiki/Hinduhttp://en.wikipedia.org/wiki/Arthttp://en.wikipedia.org/wiki/Media_(arts)http://en.wikipedia.org/wiki/Soundhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Pitch_(music)http://en.wikipedia.org/wiki/Melodyhttp://en.wikipedia.org/wiki/Harmonyhttp://en.wikipedia.org/wiki/Rhythmhttp://en.wikipedia.org/wiki/Tempohttp://en.wikipedia.org/wiki/Meter_(music)http://en.wikipedia.org/wiki/Articulation_(music)http://en.wikipedia.org/wiki/Dynamics_(music)http://en.wikipedia.org/wiki/Timbrehttp://en.wikipedia.org/wiki/Texture_(music)http://en.wikipedia.org/wiki/Performancehttp://en.wikipedia.org/wiki/Definition_of_musichttp://en.wikipedia.org/wiki/Definition_of_musichttp://en.wikipedia.org/wiki/Aleatoryhttp://en.wikipedia.org/wiki/Genrehttp://en.wikipedia.org/wiki/Genre#subgenrehttp://en.wikipedia.org/wiki/The_artshttp://en.wikipedia.org/wiki/Performing_artshttp://en.wikipedia.org/wiki/Fine_arthttp://en.wikipedia.org/wiki/Greek_philosophyhttp://en.wikipedia.org/wiki/John_Cagehttp://en.wikipedia.org/wiki/Noisehttp://en.wikipedia.org/wiki/Jean-Jacques_Nattiezhttp://en.wikipedia.org/wiki/Natural_soundshttp://en.wikipedia.org/wiki/Indian_classical_musichttp://en.wikipedia.org/wiki/Hindu


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MARKET SHARE OF MUSIC

Universal 25.9%

Sony 14.1%

EMI 12.0%

Warner 11.9%

BMG 11.1%

Others 25.0%

55% of the music sold in 2004 was bought by people

older than 30 compared with 48% in 1999, according

to the International Federation for the Phonographic

Industry. Universal Music had 25.5% of the market,

Sony BMG was second with 21.5%, EMI was third with

13.4%, Warner Music has 11.3%. Universal grabbed a

big chunk of North American market share from its

three main rivals, jumping to 32.5% from 27.9%while Sony BMGs share slipped to 24.9% from 27.6%.

By genre, Americans are buying more country music

and less pop than they did five years ago, the IFPI

found, while Britons are buying more rock and rap and

less dance music. Germans are also buying more rock

at the expense of pop and dance
http://news.yahoo.com/news?tmpl=story&cid=581&e=4&u=/nm/20050802/tc_nm/media_music_ifpi_dchttp://news.yahoo.com/news?tmpl=story&cid=581&e=4&u=/nm/20050802/tc_nm/media_music_ifpi_dchttp://news.yahoo.com/news?tmpl=story&cid=581&e=4&u=/nm/20050802/tc_nm/media_music_ifpi_dchttp://news.yahoo.com/news?tmpl=story&cid=581&e=4&u=/nm/20050802/tc_nm/media_music_ifpi_dchttp://news.yahoo.com/news?tmpl=story&cid=581&e=4&u=/nm/20050802/tc_nm/media_music_ifpi_dchttp://news.yahoo.com/news?tmpl=story&cid=581&e=4&u=/nm/20050802/tc_nm/media_music_ifpi_dc


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MUSIC GROWTH RATE IN INDIA

the Indian music industry is the fifth largest consumer of music

units in the world (181.1 million units), but due to rampant piracy

and lack of deterrent punishment to pirates and other issuesbeing faced by IMI, it lacks way behind at no 18 in the world in

terms of music value (0.6% of world sales). The time is thus

appropriate for Indian Music Industry (IMI) to fight its way back

from several years of plummeting sales brought on by music

piracy; high rate of taxes; online downloads and competing

forms of entertainment such as FM Radio, Multiple Music

Television Channels, Video Games and DVD's.

The Indian Music Industry (IMI) is a consortium of over 50 musiccompanies including several prominent regional and nationallabels such as SAREGAMA, Universal Music, Tips, Venus, BMGCrescendo, Sangeetha, Sony Music, Virgin, Aditya Music actingthrough their principal officers and representing over 75% of theoutput in legitimate recordings and a wide range of musicalrepertoire. IMI strives to protect the rights of phonogram

producers and in the process promote the development ofmusical culture.

IMI represents the recording industry of India and is affiliated toIFPI the World Industry body having 1,450 members in 75countries and Industry Organisations in 48 countries. While PPLis the exclusive Copyright Society engaged in the business ofmusic licensing of the recording industry, with affiliates in 45countries of the World.


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FUTURE OF INDIAN MUSIC

The music industry of today looks almost nothing like the music

industry of 20 years ago. There are a ton of reasons, most of them

having to do with digital technology. If you are a young journalist

starting out today, you may still aspire to get a big publisher to give you

an advance and widely publish your book; but if you are a young

musician starting out today, do you want to get a big record advance or

do you want to sell the music yourself, like these folks do, and like Jane

Siberry does? If you are a record label, what do you do about illegal

downloads, and do you keep putting out albums that nobody buys or

do you instead try to release only individual songs, as many people seem

to prefer? It strikes me as ironic that a new technology (digital music)

may have accidentally forced record labels to abandon the status quo

(releasing albums) and return to the past (selling singles). I sometimes

think that the biggest mistake the record industry ever made was

abandoning the pop single in the first place.
http://freakonomics.blogs.nytimes.com/2007/03/29/how-much-for-that-song-its-up-to-you/http://freakonomics.blogs.nytimes.com/2006/05/03/how-is-a-canadian-art-pop-singer-like-a-bagel-salesman/http://freakonomics.blogs.nytimes.com/2006/05/03/how-is-a-canadian-art-pop-singer-like-a-bagel-salesman/http://freakonomics.blogs.nytimes.com/2007/03/29/how-much-for-that-song-its-up-to-you/http://freakonomics.blogs.nytimes.com/2006/05/03/how-is-a-canadian-art-pop-singer-like-a-bagel-salesman/http://freakonomics.blogs.nytimes.com/2006/05/03/how-is-a-canadian-art-pop-singer-like-a-bagel-salesman/


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ROCK MUSIC

COST SHEET FOR THE YEAR ENDED 2009

Particulars Amount Amount

Opening Stock of Raw Material

Add: Purchase of Raw materials

Raw Materials Consumed

Direct Wages (Labour)

Direct Charges

10,00,000

15,00,000

25,000

50,000

25,000

Prime cost (1) 26,00,000 26,00,000

Add :- Factory Over Heads:

Factory Rent

Factory Power

Indirect Material

Indirect WagesSupervisor Salary

Drawing Office Salary

Factory Insurance

Factory Asset Depreciation

80,500

1,38,000

1,00,500

50,00045,000

25,500

5,30,000

30,500

Works cost Incurred 10,00,000 36,00,000

Add: Opening Stock of WIP

Less: Closing Stock of WIP

5,00,000

50,000Works cost (2) 4,50,000 40,50,000

Add:- Administration Over Heads:-

Office Rent

General Charges

Audit Fees

70,000

50,000

35,000


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Bank Charges

Counting house Salary

Other Office Expenses

20,000

15,000

10,000

Cost of Production (3) 2,10,000 42,60,000Add: Opening stock of Finished Goods

Less: Closing stock of Finished Goods

5,00,000

40,000

Cost of Goods Sold 4,60,000 47,20,000

Add:- Selling and Distribution OH:-

Sales man Commission

Sales man salary

Traveling Expenses

AdvertisementDelivery man expenses

Sales Tax

Bad Debts

30,000

35,000

12,000

1,00,00030,000

25,000

30,000

Cost of Sales (5) 2,62,000 49,82,000

Profit (balancing figure) 1245500

Sales 6227500


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Calculation of profit

Company can earn 20% profit in total cost

Total cost * %

Profit= (100-%)

= 49,82,000 * 20

80

= 1245500

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