Costing System Process Project

Part 3: Activity-Based Costing:
Activity-Based Costing Video Link: How Small Planes are manufactured http://www.youtube.com/watch?v=4LhN_T5tGK8

Requirement 1: Questions to be answered:

1. Discuss the Activity-Based (ABC) concept:
   • Define Activity-Based Costing (ABC) concept.
   • Describe how the ABC costing method works.
   • Why is the ABC costing method used to manufacture small planes?
2. List at least 6 activities that is included in the manufacturing process for building small planes.
3. List at least 6 items that is included in Direct Materials (items needed to manufacture small planes).
4. List at least 3 items that is included in Manufacturing Overhead (items needed by employees as they manufacture small planes).

Part 4: Quality Management and Just-In-Time Management:
Quality Management/Just-In-Time Management Video Link: How Chocolate is Made http://www.youtube.com/watch?v=rdTpA0luD2U&feature=PlayList&p=3FF6723AA74606C0&index=19

Requirement 2: Questions to be answered:

1. Discuss the Total Quality Management concept.
   • Define the Total Quality Management concept.
   • Describe how the Total Quality Management method works.
   • Why is this method used when manufacturing chocolates?
2. Discuss the Just-In-Time Management concept.
   • Define the Just-In-Time Management concept.
   • Describe how the Just-In-Time Management method works.
3. List three ways of how the quality of chocolate could be determined during the manufacturing process.
4. Discuss how the Just-In-Time Management method would work in the manufacturing of chocolate.