The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Artwork commissioned for music releases - marketing expense or CoGS?
Post Info TOPIC: Artwork commissioned for music releases - marketing expense or CoGS?
maiasnow


Newbie

Status: Offline
Posts: 2
Date:
Artwork commissioned for music releases - marketing expense or CoGS?
Permalink  

Hi again everyone, I have another question sort of similar to another I posted a short while ago, but I *think* this one may be sufficiently different to warrant its own thread.

My client releases music on his record label and pays a freelance artist (usually the same artist) to create artwork to go with each release. I guess this could be considered a marketing expense, but really the artwork is part and parcel of the 'product' (a digital download of an album or EP). My thinking is that marketing expense would refer to expenses incurred in promoting said product. If the artist was to create a piece of art specifically for the Facebook page of the record label, for example, I'm guessing *that* would be classed as a marketing expense. A Google search throws up the guidance that CoGS is for "direct costs incurred to create the products a company offers", and I note that CoGS can apply to packaging. So I'm leaning towards CoGS, but wanted to seek confirmation.

Once again, many thanks in advance for any guidance you can offer.



__________________
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink  

 

I would agree that it is a direct cost and therefore COGS



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Artwork commissioned for music releases - marketing expense or CoGS?
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About