Purpose Design Co. seeks to enhance its financial management and decision-making processes through a comprehensive managerial accounting analysis. Students will work in groups of 5-6 to identify the company's needs and provide actionable recommendations based on in-depth research and analysis. The project will involve analyzing fixed and variable costs, computing break-even points, and exploring activity-based costing. Students will also prepare various budgets, assess standard costs, and calculate variances. The ultimate goal is to solve a managerial accounting problem faced by Purpose Design Co. and provide a detailed written portfolio with their findings and recommendations.

Project activities might include but are not limited to:

- Analyzing how fixed and variable costs behave and how to use them to predict costs.

- Computing the break-even point using the contribution margin approach and interpreting a cost-volume-profit graph.

- Exploring activity-based costing and how it differs from a traditional costing system.

- Preparing all budgets used in a business with an emphasis on cash flows and income projection.

- Assessing standard costs and calculating variances from actual costs for materials, labor, and manufacturing overhead.

- Identifying relevant and irrelevant costs and benefits in a decision situation.

- Preparing and interpreting statements of cash flows.

- Calculating pricing.

The project deliverables will include a comprehensive written portfolio that addresses the managerial accounting problem of Purpose Design Co. This portfolio will contain:

- A detailed analysis of fixed and variable costs and their behavior.

- Break-even point calculations and cost-volume-profit graph interpretations.

- Activity-based costing analysis and comparison with traditional costing systems.

- Prepared budgets with a focus on cash flows and income projections.

- Standard cost assessments and variance calculations for materials, labor, and overhead.

- Statements of cash flows and pricing calculations.

- Actionable recommendations based on the analysis and research conducted.