Guidelines and requirements for the project of Managerial Accounting

1. Select any hypothetical manufacturing company, and assume required data i-e direct material,
direct labor, and other manufacturing and non-manufacturing expenses.
2. Apply manufacturing overhead through traditional or ABC costing method, whichever is
appropriate and justify why u have applied particular method.
3. Prepare master budget at four quarter and its total for year and also prepare financial
statements for year.
4. Calculate Break even in units and in Rupees and also prove that break even by making the
income statement. Calculate and interpret the margin of safety, operating leverage.
5. Assume that economy will not perform well, so you are required to make expected changes in
sales, price, cost or any other component which seems to be effected by economic downturn.
6. Assume the data (other than earlier data) in order to prepare income statement (assumed to be
real) and prepare the performance report by comparing with flexible budget.
7. Identify the variances and justify the possible reasons for those variance.