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September 10, 2017 at 4:36 am
Thank you for the great Lecture!
Please let me know if we have a lecture on “Bottleneck Resource”.
John Moffat says
September 10, 2017 at 11:09 am
Thanks for the comment.
There isn’t really anything to add on the bottleneck resource other than what is in the lecture notes.
September 10, 2017 at 2:15 pm
Thank you, Sir!
September 10, 2017 at 3:25 pm
You are welcome 🙂
September 5, 2017 at 7:31 am
Hi, I need your advice.
Why we take the budgeted production when calculating the Production cost in throughput accounting why not actual production?
September 5, 2017 at 7:44 am
I do explain this in the lecture!!!
This only relates to the fixed overheads (which under throughput are everything apart from materials) and is because we assume that the budgets were prepared before knowing about the limited time, and therefore we assume that we budgeted on producing to meet demand and therefore absorbed the fixed overheads on this basis. By definition, the total fixed overheads will stay the same even though we end up producing less than budgeted.
August 11, 2017 at 1:03 pm
I am referring to Dec 14 F5 paper, question 2 in section B (Glam co.)
How should one understand in such a question whether the labour cost of all staff should be taken for factory cost calculation or just the bottleneck staff?
Thanks in advance.
August 11, 2017 at 4:59 pm
You must ask this sort of question in the Ask the Tutor Forum and not as a comment on a lecture.
August 5, 2017 at 12:10 pm
Sir you are really good…I am really understanding your lectures and am more motivated to study harder. I had difficulties at first until I started watching the lectures. Thank you Sir
August 5, 2017 at 5:10 pm
Thank you very much for the comment 🙂
August 1, 2017 at 8:11 pm
August 2, 2017 at 7:20 am
Thank you 🙂
July 18, 2017 at 12:02 am
One word to describe John: BRILLIANT
July 18, 2017 at 7:50 am
June 10, 2017 at 12:04 pm
Great lecture sir well done …. my question is though d lecture is very clear , i really did not see difference between throughput and contribution apart from the fact that material is the only significant variable cost. I hope i pass this paper f5 that lots of ppl have been crying over and running away from.This is will be my first attempt coming September .
June 10, 2017 at 4:47 pm
That is really the only difference (but an important one 🙂 )
May 11, 2017 at 6:42 pm
I cannot begin to thank you enough for so clearly presenting this topic. Keep up the excellent work!
May 11, 2017 at 6:55 pm
Thank you very much for your comment 🙂
May 4, 2017 at 10:07 pm
Thank you so much for great lecture !
May 5, 2017 at 5:56 am
Thank you for the comment 🙂
Samuel Koroma says
April 3, 2017 at 2:01 pm
Wow! A very good presentation. Thanks very much John. Based on the lecture, throughput is the same as contribution (fixed cost + profit or sales value-direct material cost). All costs in the factory is fixed except the direct cost of materials (variable). The total factory cost or operating expenses is the fixed production costs with an element of labour cost. Here, we also use throughput p.u. for each product to calculate the maximum or total throughput for the products and not the throughput p.u. of the limiting factor.
John is it advisable to rejects products with TPAR of less than one?
In calculating the TPAR for each product, is it also necessary to calculate the overall or average TPAR for the company and then measure each individual product TPAR against the overall or average TPAR?. Using Example 2
TPAR = $404,000/$360,000=1.12 OR
Return per hour = $404,000/48,000hrs=$8.42
Cost per hour = $360,000/48,000hrs=$7.50
TPAR = $8.42/$7.50 = 1.12
Product A TPAR is above the average/overall ratio.
April 3, 2017 at 2:39 pm
No – we would not reject projects with a TPAR less than 1 because they are still generating throughput. However, preference is always given to projects with the highest TPAR’s and we would always be looking for ways of increasing the TPAR’s.
There is no merit in calculating an average TPAR.
April 3, 2017 at 3:06 pm
Okay John, noted and thanks for the clarification.
April 4, 2017 at 6:22 am
February 28, 2017 at 3:28 pm
Good evening Mr. John,
in example 2, when calculating “maximum throughput”,
A: 2.000 units X $17
B: 8.000 units X $8
But in textbook, when calculating maximum throughput,
textbook uses “total machine hours” instead of “units”……. For example, in this case,
A: 40.000 hours X $17
B: 8.000 hours X $8
? Could you explain why textbook uses total hours instrad of units? I thought I only use units according to your lecture..
(BPP reading textbook throughput example 3.1)
February 28, 2017 at 4:29 pm
You can use hours at throughput per hour, or you can use units at throughput per unit – both will give exactly the same answer.
To take hours at throughput per unit would make absolutely no sense at all!!
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