Submiited By: PAWAN KUMAR


Cost accounting is an approach to evaluating the overall costs that are associated with conducting business. Generally based on standard accounting practices, cost accounting is one of the tools that managers utilize to determine what type and how much expenses is involved with maintaining the current business model. At the same time, the principles of cost accounting can also be utilized to project changes to these costs in the event that specific changes are implemented. When it comes to measuring how wisely company resources are being utilized, cost accounting helps to provide the data relevant to the current situation. By identifying production costs and further defining the cost of production by three or more successive business cycles, it is possible to note any trends that indicate a rise in production costs without any appreciable changes or increase in production of goods and services. By using this approach, it is possible to identify the reason for the change, and take steps to contain the situation before bottom line profits are impacted to a greater degree. Product development and marketing strategies are also informed by the utilization of cost accounting. In terms of product development, it is possible to determine if a new product can be produced at a reasonable price, considering the cost of raw materials and the labor and equipment necessary to product a finished product. At the same time, marketing protocols can make use of cost accounting to project if the product will sell enough units to make production a viable option. Cost accounting is helpful in making a number of business decisions. By weighing the actual costs versus the anticipated benefit, cost accounting can help a company to avoid launching a product with no real market, prevent the purchase of unnecessary goods and services, or alter the current operational

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

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 of GAAP (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 costs into 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.

Music is an art form whose medium is sound organized in time. Common elements of music are pitch (which governs melody and harmony), rhythm (and its associated concepts tempo, meter, and articulation), dynamics, and the sonic qualities of timbre 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, only sound.According to musicologist Jean-Jacques Nattiez, "the border between music and noise is always culturally defined—which 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 intercultural universal concept defining what music might be, except that it is 'sound through time.


The development of music among humans must have taken place against the backdrop of natural sounds such as birdsong and the sounds other animals use to communicate. India has one of the oldest musical traditions in the world—references to Indian classical music (marga) can be found in the ancient scriptures of the Hindu tradition


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 BMG’s 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

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 issues being 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 music companies including several prominent regional and national labels such as SAREGAMA, Universal Music, Tips, Venus, BMG Crescendo, Sangeetha, Sony Music, Virgin, Aditya Music acting through their principal officers and representing over 75% of the output in legitimate recordings and a wide range of musical repertoire. IMI strives to protect the rights of phonogram producers and in the process promote the development of musical culture. IMI represents the recording industry of India and is affiliated to IFPI the World Industry body having 1,450 members in 75 countries and Industry Organisations in 48 countries. While PPL is the exclusive Copyright Society engaged in the business of music licensing of the recording industry, with affiliates in 45 countries of the World.

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.


Particulars Opening Stock of Raw Material Add: Purchase of Raw materials Raw Materials Consumed Direct Wages (Labour) Direct Charges Prime cost (1) Add :- Factory Over Heads: Factory Rent Factory Power Indirect Material Indirect Wages Supervisor Salary Drawing Office Salary Factory Insurance Factory Asset Depreciation Works cost Incurred Add: Opening Stock of WIP Less: Closing Stock of WIP Works cost (2) Add:- Administration Over Heads:Office Rent General Charges Audit Fees

Amount 10,00,000 15,00,000 25,000 50,000 25,000 26,00,000 80,500 1,38,000 1,00,500 50,000 45,000 25,500 5,30,000 30,500 10,00,000 5,00,000 50,000 4,50,000 70,000 50,000 35,000





Bank Charges Counting house Salary Other Office Expenses Cost of Production (3) Add: Opening stock of Finished Goods Less: Closing stock of Finished Goods Cost of Goods Sold Add:- Selling and Distribution OH:Sales man Commission Sales man salary Traveling Expenses Advertisement Delivery man expenses Sales Tax Bad Debts Cost of Sales (5) Profit (balancing figure) Sales

20,000 15,000 10,000 2,10,000 42,60,000 5,00,000 40,000 4,60,000 47,20,000 30,000 35,000 12,000 1,00,000 30,000 25,000 30,000 2,62,000

49,82,000 1245500 6227500

Calculation of profit
Company can earn 20% profit in total cost


Total cost * % (100-%)

= 49,82,000 * 20 80 = 1245500

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