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Introduction This assignment consisted of two parts. The first part is mainly about the modern developments in management accounting, what is World Class Manufacturing will be explained at first. Then, five features that could help company become and remain world class will be given and demonstrate in detail. Another part is about the two calculation methods that using by companies when measure expenses and overheads. This will be show through the calculation process in detail for a Peppa Ltd by using the traditional costing methods and activity-based costing methods. A briefly explains will also be given on which set of calculations is most accurate. Part A World Class Manufacturing Today companies are trying hard to apply various Production Systems in order to achieve their aims. As a result, the management of each company must be persistent in order to reach the high targets. In order to compete internationally companies must be able to produce innovative products of high quality at low cost. World Class Manufacturing (W.C.M) could be called as one of the most known production systems in this world and this term was created by Richard Schonberger, a leading manufacturing consultant. Although there is no exact definition of this system, professor Hajme (2000) once summarised that W.C.M as a different set of concepts, principles, policies and techniques for managing and operating a manufacturing company. It is driven by the results achieved by the Japanese manufacturing resurgence following World War II, and adapts many of the ideas used by the Japanese in automotive, electronics and steel companies to gain a competitive edge. It primarily focuses on continual improvement in quality, cost, lead time, flexibility and customer service. The company which wants to doing well on the World Class Manufacturing system would be expected to equipment with the features of five aspects as follows Commitment to Quality (T.Q.M) A flexible and highly motivated workforce.