• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

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 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 5, 2021 at 8:03 am #639962
    Shi2004
    Participant
    • Topics: 79
    • Replies: 33
    • ☆☆

    Hi sir i have a query re throughput from BPP question bank. The question was as follows:

    Budget information relating to a company that manufactures four products is as follows.

    Product Max Sales Max hrs Max machine Sales price Material cost Factory cost
    Demand per unit hrs required per unit per unit per unit

    Units $ $ $
    A 1000 0.1 100 15 6 5
    B 500 0.2 100 21 10 8
    C 2000 0.3 600 18 9 6
    D 1000 0.2 200 25 16 7

    Only 750 machine hours are available during the period. Applying the principles of throughput accounting, how many units of B should be made if the company produces output to maximise throughput and profit?
    I already have the number of hour to produce C but how to find its number of unit? Please help

    November 5, 2021 at 9:38 am #639983
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Are you sure you have copied all the figures correctly, because if so they will not make any units of B !!

    The throughput return per hour for each of the products is:
    A: $850, B: $395; C: $1,940; D: $875

    Therefore they will first make as many units of C as possible, which is 2,000. This will take 2,000 x 0.3 = 600 hours. They have 750 hours available and so they will use the remaining 150 hours making the next best which is D. As a result they will not make any units of B !!

    Have you watched my free lectures on throughput accounting??

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in