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chapter 5

SASyed Ahsan Ali3y ago
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
John MoffatJohn MoffatTutor3y ago#1
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.
SASyed Ahsan Ali3y ago#2
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?
John MoffatJohn MoffatTutor3y ago#3
1. No - anything could be the limiting factor 2. Yes
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