Unit title: Music Industry: Budgeting and Accounts (SCQF level 7)

Transcription

1 Higher National Unit Specification General information Unit code: J Superclass: AK Publication date: April 2018 Source: Scottish Qualifications Authority Version: 01 Unit purpose This unit is designed to give learners a broad understanding of accounting and finance as applied to the music industry. Learners will gain the knowledge to explain common accounting terms and their use in a music-related context. Learners will then develop their skills in using software to create a music-related project budget as a spreadsheet. Finally, learners will be given further opportunity to develop their skills with software while using break-even analysis to determine a course of action. This unit has been designed for learners interested in pursuing a career in the music industry, particularly in music business. Outcomes On successful completion of the unit the learner will be able to: 1 Explain common accounting terms in a music-related context. 2 Create a spreadsheet for a music-related project budget. 3 Use break-even analysis to show effect on profits of changing prices for a music-related project within a spreadsheet. Credit points and level 1 Higher National Unit credit at SCQF level 7: (8 SCQF credit points at SCQF level 7) Recommended entry to the unit While entry is at the discretion of the centre, it may be beneficial if learners have good communication and numeracy skills. These may be demonstrated by a suitable NQ Communication and/or Numeracy unit (SCQF level 6). J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 1

2 Higher National Unit Specification: General information (cont) Core Skills Achievement of this unit gives automatic certification of the following Core Skills component: Complete Core Skill None Core Skill component Critical Thinking at SCQF level 5 There are also opportunities to develop aspects of Core Skills which are highlighted in the support notes of this unit specification. Context for delivery If this unit is delivered as part of a group award, it is recommended that it should be taught and assessed within the subject area of the group award to which it contributes. This is a mandatory unit in the framework for HNC/HND Music Business. The Assessment Support Pack (ASP) for this unit provides assessment and marking guidelines that exemplify the national standard for achievement. It is a valid, reliable and practicable assessment. Centres wishing to develop their own assessments should refer to the ASP to ensure a comparable standard. A list of existing ASPs is available to download from SQA s website ( Equality and inclusion This unit specification has been designed to ensure that there are no unnecessary barriers to learning or assessment. The individual needs of learners should be taken into account when planning learning experiences, selecting assessment methods or considering alternative evidence. Further advice can be found on our website J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 2

3 Higher National Unit Specification: Statement of standards Acceptable performance in this unit will be the satisfactory achievement of the standards set out in this part of the unit specification. All sections of the statement of standards are mandatory and cannot be altered without reference to SQA. Where evidence for outcomes is assessed on a sample basis, the whole of the content listed in the knowledge and/or skills section must be taught and available for assessment. Learners should not know in advance the items on which they will be assessed and different items should be sampled on each assessment occasion. Outcome 1 Explain common accounting terms in a music-related context. Knowledge and/or skills Revenue Gross profit Net profit Direct costs (business owners time and direct materials) Expenses (indirect costs) rent; heating and lighting Fixed costs (rent, insurance, staff salaries) Variable costs (materials used) Break-even point (BEP) Forecast Budget Cash-flow Spreadsheet Outcome 2 Create a spreadsheet for a music-related project budget. Knowledge and/or skills Income and expenditure budget for a music project within a spreadsheet Fixed and variable cost behaviour for a music project Adding cell formulas in a spreadsheet Break-even point (BEP) J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 3

4 Higher National Unit Specification: Statement of standards (cont) Outcome 3 Use break-even analysis to show effect on profits of changing prices for a music-related project within a spreadsheet. Knowledge and/or skills Break-even analysis Impact on profits of varying selling price and costs Recommending a course of action Demonstrate break-even using a spreadsheet Evidence requirements for this unit Outcome 1 Learners will need to provide evidence to demonstrate their knowledge and/or skills by showing that they can: explain six of the following common accounting terms and for each, give an example of its use in a music-related project: revenue gross profit net profit direct costs (business owners time and direct materials) expenses (indirect costs) rent, heating and lighting fixed costs (rent, insurance, staff salaries) variable costs (materials used) break-even point (BEP) forecast budget cash-flow spreadsheet Written and/or oral evidence will be generated under closed-book conditions. The assessor will choose the six accounting terms to be assessed. The whole of the content listed in the knowledge and/or skills section must be taught and available for assessment. Learners should not know in advance the items on which they will be assessed and different items should be sampled on each assessment occasion. J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 4

5 Higher National Unit Specification: Statement of standards (cont) Outcome 2 Learners will need to provide evidence to demonstrate their knowledge and/or skills by showing that they can: create a music project budget from a given brief: enter items of income and expenditure label and layout items of income and expenditure use spreadsheet functions to calculate income and expenditure totals produce a simple income and expenditure budget with projections for one fixed and one variable cost use a spreadsheet function to calculate the break-even point and state the breakeven point for the project. Product evidence in the form of a spreadsheet will be generated under controlled conditions. Learners will have access to a brief and the spreadsheet project file will be retained as evidence for external verification. Outcome 3 Learners will need to provide evidence to demonstrate their knowledge and/or skills by showing that they can: create product evidence in tabular form demonstrating the changes to break-even point and profits resulting from changes in selling prices and costs in three scenarios. use spreadsheet functions to manipulate financial information to reflect changes in management decision making. recommend a suitable course of action as a result of this information, providing a brief justification for this action. Product evidence in the form of a spreadsheet will be generated under controlled conditions. Learners will have access to a brief and the spreadsheet project file will be retained as evidence for external verification. Written and/or oral evidence will be generated, recommending, and briefly justifying, a course of action, under controlled conditions. This unit can be assessed on an outcome-by-outcome basis or Outcome 2 and Outcome 3 may be combined. J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 5

6 Higher National Unit Support Notes Unit support notes are offered as guidance and are not mandatory. While the exact time allocated to this unit is at the discretion of the centre, the notional design length is 40 hours. Guidance on the content and context for this unit This unit is primarily intended to give learners knowledge of accounting terms which are crucial to the planning, organising and implementing of any music business related project. These terms form the basis of forecasting and budgeting for projects and businesses. This unit also provides learners with the knowledge and skills to use software packages such as Microsoft Excel, Google Docs, OpenOffice or Apple Numbers to record and present financial data. Spreadsheet applications are key tools in managing the potential income and expenditure outcomes of a music related project or business. The knowledge and skills gained would be useful for anyone managing a music project and/or running their own business. This unit is aligned to elements of the following National Occupation Standards (NOS): FSP PS1 Work effectively in accounting and finance Outcome 1 learners could look at case studies comprising of budgets for music related projects such as a tour or the release of an album and/or single. Learners will provide an explanation of key accounting terms and identify financial information within a budget relating to these terms. Learners will also give an example of the use of terms in relation to a music business related project. Outcome 2 covers the preparation of an income and expenditure budget and the calculation of the break-even point. A spreadsheet software package in common use, such as Microsoft Excel is appropriate for this outcome. The range of formulas could include: adding; subtracting; multiplying and division. A minimum of two of these elements should be present. The SUM function should be demonstrated. Outcome 3 learners deduce the break-even point from a given brief through analysing costs and revenues. Learners will then demonstrate the effect that changing prices have on profits using break-even analysis within the spreadsheet. Finally learners will recommend a course of action based on this data. J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 6

7 Higher National Unit Support Notes (cont) Guidance on approaches to delivery of this unit Delivery could begin with the introduction to key accounting terms through explaining their meaning and relation to a music related project. This could be done using case studies for the release of an album and/or single, a gig, a tour or a business within the music industry. Delivery of Outcomes 2 and 3 could be based on practical use of software packages for recording financial data such as Microsoft Excel. The financial data could be based on forecasted income and expenditure using a case study for the release of and album and/or single, a gig, a tour or a business within the music industry. This data could be presented within a brief. Guidance on approaches to assessment of this unit Evidence can be generated using different types of assessment. The following are suggestions only. There may be other methods that would be more suitable to learners. The assessment for Outcome 1 should be undertaken as a separate event. The assessment for Outcomes 2 and 3 could be combined. Outcome 1 It is recommended that the knowledge and/or skills for this outcome is assessed separately. This could be conducted at a single assessment event and carried out under closed-book supervised conditions consisting of short answer questions and a case study. All elements should be taught but only six assessed, chosen by the assessor. Should there be ambiguity regarding a learner s response, oral questioning may be used to eliminate any doubt as to the learner s understanding. The lecturer should note questions and responses. Outcome 2 This could be conducted at a single assessment event and carried out under supervised conditions where learners undertake a practical activity where they will respond to a brief and produce a spreadsheet. The assessment should last approximately 90 minutes. It is recommended this outcome is combined with Outcome 3. Outcome 3 This could be conducted at a single assessment event and carried out under supervised conditions where learners undertake a practical activity where they will respond to a brief to produce a spreadsheet and a short report recommending a course of action. The assessment should last approximately 90 minutes. It is recommended this outcome is combined with Outcome 2. J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 7

8 Higher National Unit Support Notes (cont) Centres are reminded that prior verification of centre-devised assessments would help to ensure that the national standard is being met. Where learners experience a range of assessment methods, this helps them to develop different skills that should be transferable to work or further and higher education. Opportunities for e-assessment E-assessment may be appropriate for some assessments in this unit. By e-assessment we mean assessment which is supported by Information and Communication Technology (ICT), such as e-testing or the use of e-portfolios or social software. Centres which wish to use e-assessment must ensure that the national standard is applied to all learner evidence and that conditions of assessment as specified in the evidence requirements are met, regardless of the mode of gathering evidence. The most up-to-date guidance on the use of e-assessment to support SQA s qualifications is available at Opportunities for developing Core and other essential skills There are opportunities to develop aspects of the Core Skill of Numeracy and Information and Communication Technology in this unit, although there is no automatic certification of these Core Skills or associated Core Skills components. This unit has the Critical Thinking component of Problem Solving embedded in it. This means that when learners achieve the unit, their Core Skills profile will also be updated to show they have achieved Critical Thinking at SCQF level 5. J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 8

9 History of changes to unit Version Description of change Date Scottish Qualifications Authority 2018 This publication may be reproduced in whole or in part for educational purposes provided that no profit is derived from reproduction and that, if reproduced in part, the source is acknowledged. Additional copies of this unit specification can be purchased from the Scottish Qualifications Authority. Please contact the Business Development and Customer Support team, telephone J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 9

10 General information for learners This section will help you decide whether this is the unit for you by explaining what the unit is about, what you should know or be able to do before you start, what you will need to do during the unit and opportunities for further learning and employment. This unit is designed to give you a broad understanding of accounting and finance as applied to the music industry. You will gain the knowledge to explain common accounting terms and to understand their use in a music-related context. You will then go on to develop your skills in using software to create a music-related project budget as a spreadsheet. Finally, you will develop your skills with spreadsheet software further producing a break-even analysis. This unit has three outcomes: 1 Explain common accounting terms in a music-related context. 2 Create a spreadsheet for a music-related project budget. 3 Use break-even analysis to show effect on profits of changing prices for a music-related project within a spreadsheet. Outcome 1 will help you understand important accounting terms. Outcome 2 and 3 will give you the skills to display and interpret financial data using an appropriate software package such as Microsoft Excel. In Outcome 1 you will gain knowledge of accounting terms which are crucial to the planning, organising and implementing of any music business related project. These terms form the basis of forecasting and budgeting for projects and businesses. In Outcome 2 you will gain knowledge of the elements involved in creating a spreadsheet for a project budget. These software packages are essential in managing budgets for music business projects. In Outcome 3 you will produce information in tabular form for an income and expenditure budget and display the break-even point for a music business project. You will be assessed in this unit through demonstrating your knowledge and understanding by answering questions related to basic financial terminology. You will also be required to participate in a practical activity create a spreadsheet to display and perform calculations on financial information. Finally you will use a spreadsheet program to vary values and display resulting break-even points-based on this you will recommend a course of action. You may have the opportunity to develop aspects of the Core Skills in Numeracy and Information and Communication Technology (ICT). This unit has the Critical Thinking component of Problem Solving embedded in it. This means that when you achieve the unit, your Core Skills profile will also be updated to show you have achieved Critical Thinking at SCQF level 5. J011 34, Music Industry: Budgeting and Accounts (SCQF level 7) 10