Managerial Accounting Concept Application Project

Purpose: Plan to manufacture and sell a product and make Net Income of 1,000,000 by the end of the second year. One product must have at least two components (could be to two sub-assemblies) the other does NOT have to be manufactured.

Each team is to apply the concepts covered in this course. During the project you are to apply managerial accounting decision-making concepts and tools covered in the course. This will prepare you for the next exam and final.

Key objectives:

1) Present the company's projected Financial Statements for each year (three years).

-Target Net Income of at least $1,000,000 by the third year.

-Break-even by the second year in operation.

- Quarterly Budgets for 1st year, Annual Budgets thereafter.