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Throughput accounting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput accounting

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • May 7, 2016 at 7:42 pm #314048
    kasia
    Participant
    • Topics: 24
    • Replies: 17
    • ☆

    Dear John,

    In regres to q20 ‘Corrie’ in bpp revision kit could you please explain to me how the bottleneck is calculated here? I don’t understand the logic behind the answer at the back.
    I calculated 60/1200units which gives 0.05min but I don’t understand why we multiply it by $80 where in all of the previous examples we were deviding throughput by the ‘problem’.

    Thank you

    May 8, 2016 at 8:06 am #314083
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54695
    • ☆☆☆☆☆

    They are not multiplying 0.05 minutes by 80!

    Each unit takes 0.05 minutes, which is 0.05/60 hours (because there are 60 minutes per hour).

    Therefore the throughput return is 80 / (0.05/60) which is 96,000

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