- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bpp throughput accounting question
It is page 58 of the bpp text example 3.1…to derive at the profit , the writer calculated throughput by multiplying the total hours by the throughput per hour…..on OT to calculate total throughput we multiply the allocated units by tge throughput per hour…..therefore i woyld like to know which one is correct.or am i missing something?
Nowhere in our lectures or lecture notes do we multiply the units by the throughput per hour – it would be nonsense.
You either multiply the hours by the throughput per hour, or you multiple the units by the throughput per unit. Both will always give the same answer.
ok great thank you…it must have been a situation of me not understanding
You are welcome 🙂