- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
The following information is available for a single product:
Units produced 500
Time taken 200 hours
Maximum time available 200 hours
Materials purchased 1,000 kg costing $3,000
Materials used 800 kg
Labour costs $2,000
Overheads $1,500
Sales $9,000.What is the throughput accounting ratio for this product?
1. The answer is 1.70
2. Material purchased rather than material used has been used to calculate throughput.
– Could you explain why?
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘throughput accounting’ is closed to new replies.