Assigning Overhead Costs
This video shows the process of producing Titleist golf balls and provides a good example of a company that could use a plantwide overhead rate to assign overhead costs. The highly standardized process of making nearly identical standard golf balls may not justify an activity-based costing system.
Costs of Quality
This video documents the largest recall in Toyota’s history. Known for its commitment to quality, Toyota severely damaged its reputation when a defective accelerator pedal in its Camry and Prius resulted in multiple deaths. This provides a prime example of an external failure cost.
Lean Manufacturing
This video detailing Toyota’s production process is a good introduction to lean manufacturing. It discusses many lean features, including Just-in-time (JIT) inventory systems and a commitment to quality.