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September 4, 2017 at 12:06 pm
In revision kit they say inventory should be kept at 0 not even minimum while in bpp they say inventory should be kept minimum so that once bottleneck resource becomes available production can continue….why are they confusing us???
John Moffat says
September 4, 2017 at 12:36 pm
I don’t think they are trying to confuse you 🙂
In an ideal world inventory would be kept to zero. In practice (as you will know from just-in-time) it is not practical for it to be zero but should be kept to a minimum.
Since you are obviously not watching the free lectures (because this is not the correct page) you should ask questions in the Ask the Tutor Forum and not as a comment on a lecture that you have not watched!!!!
November 17, 2016 at 9:13 am
Great lecture! 🙂
November 17, 2016 at 4:04 pm
Thank you very much 🙂
September 19, 2016 at 7:31 pm
Sir can u explain me about conversion cost and its treament in throughput accounting. Thank u
July 25, 2016 at 3:01 pm
Thank you for a clear and concise video sir.
July 25, 2016 at 6:07 pm
And thank you for your comment 🙂
July 19, 2016 at 4:59 pm
thank you sir we appreciate your help its helpful keep up the good work
July 20, 2016 at 5:41 am
Thank you for the comment 🙂
July 5, 2016 at 2:55 pm
hi sir ! i wanna know about contribution per unit, i mean what it represent profit per unit ????
July 5, 2016 at 7:22 pm
As I actually write on the screen, contribution is the selling price less the variable costs (which is the same as the profit before fixed costs).
June 6, 2016 at 5:04 am
Please, tutor, help me on this: The cost card per unit for a product is as follows:
Materials 9 Labour (1hr) 6 Other production costs 8 Total 23
The selling price is $30 per unit and each unit requires 6 minutes of machine time. Machine time is a bottleneck resource. What is the return per factory hour ( in a throughput accounting environment) ?
Solution: The throughput per unit = 30 – 9 = 21 The machine time per unit = 6 minutes = 6/60 or 0.1 Return per factory hour = 21/0.1 = 210
My question is, where is that ’60’ coming from? Thanks.
June 6, 2016 at 7:30 am
You must ask questions like this in the Ask the Tutor Forum and not as comments on lectures. There are 60 minutes on one hour, therefore 6 minutes = 6/60 = 0.1 hours.
June 7, 2016 at 9:59 am
Pardon me sir. Thank you very much.
June 7, 2016 at 11:59 am
You are welcome 🙂
May 19, 2016 at 3:01 pm
Thank you Mr John Moffatt, your lectures are insightful… I also appreciate ACCA and all partners for laudable opportunities you offer to would-be accountants, irrespective of locations.
March 15, 2016 at 10:29 pm
I’m following your lectures for F5 and this is the 4th chapter. The theoretical part seem fairly easy for me however, when I attempted some exam questions re this topic I always got something wrong! Sometimes I get confused which no of hrs to use when working cost per factory he. Theoretically I know that I should use the no. Of hrs on the bottleneck resource but when I search for the numbers I get confused! The question is too long!
Are there any suggestions which can help?
March 16, 2016 at 6:24 am
In future please ask this sort of question in the Ask the Tutor Forum and not as a comment on a lecture 🙂
If you understand the idea, then there is no other solution but to practice. Practice on exam-standard questions in your Revision Kit is the most vital thing of all, to get used to the style of questions and get better at finding the right numbers.
February 25, 2016 at 2:28 pm
Thankyou so much. I wish I knew about this website back when I was going for f2. I’m thinking of giving this and f4 this june and I really hope I can ace them with just this and exam kits alone. God bless you.
February 25, 2016 at 7:37 pm
Thank you very much for your comment 🙂
February 21, 2016 at 2:31 am
i will just like to appreciate that the way you deliver the course is good and makes it look simple and easy to understand. l just hope the exams will equally be easy
February 21, 2016 at 8:24 am
Thank you 🙂
February 9, 2016 at 8:39 am
sir i have started studying F5 7 days back and came accross this site.. proviede i study hard using ur lectures.. is it possible to pass the F5 exam in march 2016 exams?… i mean to ask if this is a possible task?
February 9, 2016 at 3:27 pm
Yes it is – download our free Study Guide which links to the lectures and suggests the best past exam questions to attempt.
(In future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture)
February 9, 2016 at 5:42 pm
oh sure sir, thank you so much for replying me. And your words encourage a lot, thank you.
February 10, 2016 at 6:09 am
February 4, 2016 at 9:43 am
What is difference between throughput factory per hour and Throughput return per factory hour. Please explain sir Thanks
February 4, 2016 at 2:39 pm
Throughput return per factor hour is the throughput (selling price less material cost per unit) divided by the hours per unit.
There is no such term as ‘throughput factory per hour’. However, throughput factory cost per hour is the total costs in the factory (apart from materials) divided by the total hours available.
Both of these terms are in fact explained in the lectures.
February 4, 2016 at 2:59 pm
OK thank you very much sir.
January 24, 2016 at 5:39 pm
THANKS FOR YOUR LECTURE I ADMIRE ALL YOUR EFFORTS. VERY CLEAR AND UNDERSTANDING.
ONCE MORE. BIG RESPECT SIR..
January 25, 2016 at 6:55 am
January 19, 2016 at 8:21 pm
If I start studying F5 from today then will I be able to clear it on 8 March 2016?
January 20, 2016 at 8:34 am
Certainly – provided you study hard 🙂
January 19, 2016 at 9:41 am
Do you think if i start F5 today i can take the exam on march 7th.
ali imran says
December 4, 2015 at 5:58 am
1) Why you solve throughput question by marginal approach using Contribution? 2) In assumption “Cost card prepared based on producing to meet maximum demand” means? 3) The Correct solution of this problem is using all cost as fixed cost except Material such as $15 for A and $6 for B, Right?
December 4, 2015 at 7:07 am
We don’t use contribution if it is throughput accounting! In normal key factor analysis we use contribution because as production changes it is only the sales revenue and variable costs that will change – the total fixed costs will not change.
If it is throughput accounting, we use the same logic but assume that the only variable cost is materials. Therefore effectively the contribution becomes sales less materials, but we call it the throughput.
If the cost cards were prepared assuming we produce to meet maximum demand (because when they were prepared they did not know there would be a limit on the time and therefore they would not be able to produce in full). Then the fixed overheads would have been absorbed on the basis of producing to meet full demand. (The absorbing of overheads is Paper F2, although in F5 you will not be asked full absorbing exercises as are asked in F2).
I do suggest that you watch the lecture again, because I do explain all of this in the lecture.
December 4, 2015 at 7:53 am
Many many thanks, Sir
December 4, 2015 at 8:34 am
November 25, 2015 at 5:31 pm
HELP: Company makes 2 products:
X Y Selling $50 $32 Mat $10 $6 DL $20 $15 Assem Time 20 mins 15 mins Max Demand 1500 units 1000 units Max limited 600 hrs How many units should Y produce: answer 400 Units – HOW?
November 25, 2015 at 5:33 pm
You must ask this in the F5 Ask the Tutor Forum, and not as a comment on a lecture.
November 25, 2015 at 10:11 am
Good day sir john , I was just thinking that can he ask us a throughput accounting question with learning curve in calculating labour cost ? if yes then how to deal that question ? please advise thanks
November 25, 2015 at 10:26 am
I cannot imagine that she would.
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