repare a capital budget for a new product line.

Identify an improvement project for your business.

You make your own assumption of project timeline, rate of return, operation cash inflows and outflows, disposal value, and any other necessary data.

Evaluate the project using Net Present Value.

Exercise flexible budget and variance analysis.

Prepare a flexible budget for your business including three levels of sales or production activities.

Extend the above flexible budget to an activity$-$based flexible budget including four activities.

Make your own assumption of an execution result for a specific activity level budgeted.

Compute the flexible budget variance, activity level variance, and static budget variance.

Include the price variance and quantity variance in the flexible budget variance.