[dalvi97]

Much appreciated sir!!
The steps in the revision kit are different and it was confusing.
This makes more sense!

For #2, Yes, increase of the TAR is what I thought too. Understood!

Yes, i have watched the lectures. They, indeed, are very helpful 🙂
Thank you again for your help sir!

[dalvi97]

Question #2(unrelated to the previous): How does, reducing machine time per unit to make a product, have NO effect on the throughput accounting ratio. Can you please explain this with an example as well.
Thanking you in advance, Sir.

[dalvi97]

CD plc produces a single product, the BC, which passes through three different processes, Alpha, Beta and Gamma. The throughput per hour of the 3 processes is 25, 30 and 32 units of BC respectively. The organisation operates for 10 hours a day, 5 days a week for 50 weeks of the year. The BC can be sold for $420 per unit and it has a material cost of $170 per unit. It is anticipated that the annual conversion cost will be $1,800,000.
What is the throughout accounting ratio per day?

Can you explain this answer step-by-step, getting the numerator as well as the denominator. I am terribly confused. Thank you, sir.

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