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1)Sir interest on loan is committed cost?
2) Sir what is the difference between key factor analysis and throughput accounting/bottleneck?1. If the loan already exists then yes – it is a committed cost (because it will be payable anyway). If the loan is taken out because of a new project then the interest is not a committed cost – it is a cost of undertaking the project.
2. My free lectures on Chapter 5 of the free lecture notes make the difference perfectly clear, and I suggest that you watch them!!!! Throughput accounting assumes all costs except for material are fixed in the short-term, key factor analysis treats labour and variable overheads as being variable.
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