Fantastic , Inc . is a case study which allows you to incorporate numerous financial and managerial accounting concepts into a single business setting . You will take the position of the company controller who will prepare the budget for the year ended December 31 , 2006 , using the actual data from 2001 through 2005 and information given to you by various departments . You will prepare a report for the president of the company describing the strengths and weakness of the corporation as well as to provide suggestions for the future . In short , you will be responsible for the planning and control procedures for the company from an accounting standpoint .
In order to focus on important accounting concepts , certain simplifications are necessary to make this case manageable . The student should keep the following simplifications in mind while working on this case :
� Work in process inventories will be ignored . � Financial and IRS tax will be the same . � Some projections for 2006 will be given .
� Standards used for the 2006 budget will be the reasonably obtainable standards .
� No hourly worker will work overtime .
� All price changes will occur on January 1st and will remain in effect for the entire year .
� The actual 2005 information is available while preparing the 2006 budget .
� All debt transactions will occur either on January 1st or December 31st .