ACCT 556 RANK Learn by Doing/acct556rank.com ACCT 556 RANK Learn by Doing/acct556rank.com | Page 9

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.
 There are no bad debts.
The student should also keep in mind that the budgeting process is not
an exact science; therefore, approximate figures provide adequate
information for the decision maker. Figures should be rounded to the
whole dollar throughout the budgeting process and the control