Managerial AccountingACT 333Section: 01Project Topic: Implications of the mechanics of Managerial AccountingGroup Name: Team AMBIGUOUSPrepared For:Afrin RifatLecturerDepartment of inance an! Accounting"chool of #usinessNorth "outh $ni%ersit&PreparedBy:Name IDNabila Tasni 1!!01!!0"0#asiuddin A$ed 1!101%00"0Ati'ur Rahaman "hao(n )*)+,*,+3+Ar-uman! Rahman "a.i' )*3+)/013+S& M& Mosta'i(ur )a$an 1!101*+0"0Page 1 of 29Letter of Transmittal,ate: August *- !01+Ms& A'rin )i'at.ecturer- ,epartent o' Accounting and Finance-Sc$ool o' Business-Nort$ Sout$ Uni/ersit0&"u.ject:Subission o' Group Pro1ect )eport&,ear Miss-#earegladtosubit 0out$ereport entitledIplicationso't$eec$anicso' ManagerialAccounting on a product& #e anu'acture a product called 2Globe S$aped .ap3& As 4e 4eread/ised-4e$a/esuccess'ull0anu'acturedour product 2Globe S$aped .ap3'or t$e assar5et b0 5eeping a /er0 copetiti/e price and adding a sall ar56up& It gi/es us iensepleasure to tell 0ou t$at 4or5ing on t$is report $as gi/en us /ast e7perience& #e applied all our5no4ledgegat$eredint$iscourseto1udgeande/aluatet$eissuesrelated4it$ManagerialAccounting and di''erent costing et$ods& #e belie/e t$is 4ill be /er0 $elp'ul in ourpro'essional li'e also&It 4as trul0 a great $onor 'or us t$at 4e 4ere pro/ided t$e opportunit0 to 4or5 on suc$ a great pro1ect& #e $ope 0ou 'ind t$is report satis'actor0&Sincerel0 8ours-Tea AMBIGUOUSPage 2 of 29G.OB9S:AP9, .AMPPage 3 of 29A.stractAccording to our pro1ect re;uireents 'irst 4e select a product t$at 4e can anu'acture& In ourgroup 4e 4ere 'i/e people and 4e c$oose to anu'acture 2Globe S$aped .ap3 as our product4$ic$ $as soe siple production process& B0 using our 5no4ledge 'roManagerialAccounting and di''erent costing et$ods 4e anal0(ed t$e cost o' our product 2Globe S$aped.ap3 and deterined 4$at 4ill be our selling price b0 coparing it 4it$ our copetitors andade t$e aster budgets& #e also deterined t$e brea56e/en point in unit sales and in re/enue&Our production cost includes direct aterial li5e ball- glue- t$read- soc5et- 4ire and $older& #eselected direct anu'acturing labor $our as allocation base and calculated t$e labor $ours basedon t$e total $ours all o' our 'i/e ebers 4or5ed b0 assuing t$at our group ebers are t$eonl0 labors a/ailable#e $a/e planned to sell 1ta5a and t$e operating le/erage is 1&=+ties& Page 4 of 29Content Page Num.er)2 Pro!uct #ac'groun! >!& Industr0 and t$e copetitors *32 Manufacturing process =02 Ma3imum pro!uction in a month =,2 Pro!uction cost %12 "upport costs an! selling cost 1042 Anal&-ing an! Classif&ing cost 10/2 ull cost 11%& Product cost under ?ob @osting S0ste 1!10& Brea5 ,o4n o' t$e costs 1"))2 Acti%it&5.ase! costing s&stem 1+)*2 The pro!uct5line profita.ilit& reports 1>)32 Pricing strateg& 1*)02 Master #u!get 1=),2 A .u!gete! income statement !04atts so't64$ite bulb inside t$e lap but can beuse an05ind o' bulb a/ailable in t$e ar5et& To aintain a nice si(e and s$ape 4e use a ediusi(e ball& People can $ang t$e lap an04$ere t$e0 li5e as it is eas0 to $ang up& And itAs /er0 eas0to lig$t up t$e lap& Onl0 need toput t$e plug into t$e soc5et- and t$e lig$t 4ill be on& Mainl0interior designers use t$is lap to design t$eir arti'ice& Purpose to select t$is product is t$e a/ailabilit0 o' t$e ra4 aterials o' a5ing t$is product anda5e soe di''erent t$at is not our traditional lap& It also eas0 'or us to a5e t$is product4it$inas$ort tie& 9/en 4ecancopete4it$ot$er retailers4it$t$is product& Mostiportantl0- our group ebers 4ere co'ortable 4or5ing t$is lap and t$oug$t it as t$e bestoption a/ailable 'or&*2Associate! in!ustr& an! opponent part&:Page 6 of 29No4 a da0s ost o' t$e consuers are loo5ing 'or oriental and uni;ue loo5ing products rat$ert$an traditional loo5ing products t$at 'ollo4 siple tec$nological arc$itectures- 'or decoratingt$eir $ouses&Ma1orit0o'lapproductsareusedb0t$e interior decorationindustr0& Ourcountr0Aslocalcopetitorsare,es$i ,os$-Aarongandan0single s$oplocated atBadda-Guls$an- Bas$und$ara and in /arious localit0 4$oare sellinglocal and iportedlaps&Soeonline s$ops li5e Ca0u isalso selling siilar products in t$e ar5et& T$e ain pre/ilage 4e4ill get is t$e priceD As our anu'acturing cost is lo4 4e o''ered t$e lap to t$e custoer 4it$ a/er0 c$eap and attainable price& T$oug$ soe 4ebsites sell odern .9, laps 4$ic$ are /er0c$eap in priceEaround "00 ta5aF&:o4e/er- t$ere is a proble 4it$ t$oseproduct& As it uses.9,lig$ts insteado' traditional bulbs- t$e replaceent o' lig$ts is not as eas0as ours&Traditional bulbs are 4idel0 a/ailable in t$e ar5et and lasts longer t$an c$eap .9, lig$ts&T$e copanies B s$ops 4e are considering as our copetitors are ainl0 targeted t$e upperiddle class and upper class custoers o' t$e societ0 4$ereas 4e are targetting t$e iddle andlo4er iddle class along 4it$ upper iddle class custoer 4it$ our siple but nice loo5ing t0peo' lap& As 4e are selling t$e siple t0pe o' lap at a /er0 attainable price and $a/e di''erenttarget custoers t$an ot$ers 4e ig$t sa0 t$at 4e $a/e no big copetitors in t$e ar5etD #e$ope t$at e''ecti/e price o' our product 4ill $elp us to increase our sells&"& Manufacturing Process:Page 7 of 29Our process o' anu'acturing 2Globe S$aped .ap3 is discussed belo4: For a5ing t$e outloo5 o' our lap b0 using t$e t$read 4e 'irst ar5ed t$e upper side and t$e lo4er side o' t$e ball 4$ic$ 4ill not be co/ered b0 t$e t$read& T$en 4e i7 soe 4ater 4it$ t$e glue& A'ter i7ing up t$ose glue and 4ater 4e applied it in our ball and t$read 'or ! to " inutes b0 using our $and& T$en 4e start slo4l0 co/ering t$e ball 4it$ t$e t$read& A'ter co/ering t$e ball 4it$ t$e t$read 4e again applied glue in t$e t$read 'or t$e upper side so t$at it 4ould be stic5 to t$e ball deepl0& T$en 4e $a/e to 5eep it to dr0 'or ! da0s 4it$out an0 touc$& A'ter t4o da0s 4e detac$ed t$e ball 'ro t$e solid t$read& And attac$ t$e globes$aped solid t$read 4it$ t$e electric 4ire 4$ic$ is connected 4it$ soc5et and $older& And t$us our lap becoe read0 'or sellD02 Ma3imum Pro!uction:Assuring t$at 4e are t$e onl0 labors a/ailable to produce t$e lap- 4e decide to 4or5 %&00 a& to >&00 p& eac$ da0 and 4ill $a/e an $our brea5 in6bet4een& So basicall0 4e 4ill 4or5 = $ours a da0&According to our calculation i' ta5es 0&+ $ours to round t$e ball b0 t$reads- ! da0s to dr0 it- 0&!$ours to detac$ t$e ball 'ro t$read and 0&! $ours 'or electrical connection&So it ta5es 1&1 $ours to a5e and ! da0s to dr0 to produce a single lap& 7hich ean a 4or5ingda0s o' = $ours 4e can produce E=$rsG1&1$rsF on *&!* appro7iatel0 * lap eac$ da0 and E*!!FH1+< lap in 1 ont$4$ic$ ta5e ! da0s to dr0 up& #ut t$e last ! da0s laps E*! da0sF or )0lamps (ill not !r& up (ithin the month2 "o our total finishe! pro!uct (ill .e 8),05)09 or)0+lamps in a month25. Production Cost:Page 8 of 29PER UNIT (TAKA) TOTAL (PER UNIT * 140 )DIR:CT MAT:RIAL :#ALL 8 )*70 TK) *0 %=00 TACAGL$: 8)* 120 TK) 1!0 1>=007IR: 8,T * 8 TK/FEET) 00";C;LD:R9"0 R:AD 8 * ;$NC:= ,+ T< ? ;$NC:9100 1