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Qualification - BTEC Level 3 Foundation diploma in engineering
Unit Name - Applied commercial and quality principles in engineering
Unit Number - Unit 4
Assignment Title - Activity-based costing
Level - Level 3
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You have been hired by a local Engineering firm that produces 3D manufactured components for medical equipment. The plastic they use is ABS plastic and have a fleet of 3D printers. They deliver for free to all parts of the country with delivery expected in 2-3 days. They have been producing bespoke work for one off customers on the side and have asked for you to produce an Activity based costing method that they could incorporate into their business to make sure they make a profit.
You will need to provide a detailed example of why it is important for companies to control their costs to survive in this competitive market. You are advised to find examples of what could occur if businesses do not control their costs effectively. The business would also like to expand in the near future so this must be considered in your response.
You will be provided with a detailed overview of all products and services used to produce a given engineered product or service you will then be required to produce a detailed and refined activity-based cost model for the product or service given. You will then produce a list of advisories where necessary to make the most of the competitive advantage that the business currently has and how this could be impacted both negatively and positively given your cost model.
Produce an effective floor layout for the completion of the work and explain how this efficiency may lead to cost control.
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