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I have two questions and I need to ask whether it is true that or not.
(1) Key Factor Analysis = we use contribution per limiting factor
(2) Throughput Accounting = we use throughput return per limiting factor
For key factor analysis what you have written is correct.
For throughput accounting we use the throughput return per factory hour – it is factory hours that are the limiting factor.
Thank you for your response 🙂
Is it also true that in:
(1) Key factor analysis = we always have labour hours as limited factor(2) Throughput accounting = we always have machine hours as limited factor. Factory hours is actually machine hours that is limiting factor. correct?
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