Comments

  1. avatar says

    Heeeeeey sir! Long time no see haha. I just completed my CAT and just started ACCA F4-F6. I must say sir your lecture is brilliant as always, it blew my mind haha! Totally excellent-quality lecture, I truly value your contribution (see what I did there xD). Jokes aside, you are legendary, sir John Moffat. Hats off! God bless you a long life.

  2. avatar says

    Very well explained. I was a bit confused about Throughput accounting from my paid lectures at LSBF, but your to the point examples and explanations were amazing.
    Thank you very much

  3. avatar says

    Hello John,

    In example 1 on pg 15, why don’t we calculate the maximum profit by multiplying $2 which is the profit per unit with the 19,000 units of A and then with the 10,000 units of B and add them to get a maximum profit of $ 58,000?Why make the assumption about the fixed cost when the profit per unit is given in the question?

  4. avatar says

    Wow opentuition is the best thing that ever happened to me,jst reading other people’s questions and the answers from the tutor r so relevant to ma own difficult areas, I going 2 kill these f5 thank u all.

  5. Profile photo of Thanana says

    Oh and by that I mean thank you, for the lectures, you just hit straight on the essential things to get one to pass the exam, yes with better chances of course with sufficient practice.

  6. Profile photo of drice99 says

    Hi, John brilliant lecture style thank you very much!
    Can I ask a question, page 16 of the notes, it says
    “In a just in time environment we should be attempting to eliminate inventories. Use of a limited resource in production of inventories should be avoided and therefore any work in progress should be valued at only the material cost”

    Does this mean that there will be no WIP element of a throughput accounting question?
    Either way, does this statement mean that throughput accounting only takes into account what resources are available after production of inventory or does it assume that a company does not produce its own inventory at all?..I guess I don’t fully understand the statement!

    Cheers

    • Profile photo of John Moffat says

      WIP calculations are certainly not relevant for F5 :-)

      The reason that throughput assumes that no inventories are held is that it is assumed that materials are the only true variable cost – i.e. that week by week we buy exactly the material that is needed week by week. If we were keeping inventories then this would not necessarily be the case – we could buy the same materials each week and have inventory left at the end of weeks with low sales, and then use it in weeks when we had high sales. It would make purchases more of a fixed cost in the short them, whereas the essence of throughput accounting is that we regard it as the only real variable cost.

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