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Function of song in non-musical films

1) What should be the function of song in non-musical films? A couple of reasons I could think of is, to show character's emotions or to voice their inner monologue(?). What other things it can do?

I am talking about songs that are specifically composed and recorded for the movie. For example, 'Raindrops keep falling on my head' in Butch Cassidy and the Sundance Kid, 'Moon River' in Breakfast at Tiffany's.

2) In non-musical films, most of the time, songs come during the opening titles or end credits. If it comes somewhere in the middle, like in the above 2 examples, who makes that choice? Do the writer specify it in the script (not the lyrics, just the placement) or the composer/director/producer decides it?