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Factory costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Factory costs

  • This topic has 1 reply, 2 voices, and was last updated 8 months ago by John Moffat.
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  • October 11, 2021 at 4:02 pm #637464
    Natasha1996
    • Topics: 34
    • Replies: 22
    • ☆☆

    What do Factory costs and Factory hours mean in TPAR?

    Is it true that Factory costs include all costs (Labor cost; Other Variable costs; Fixed cost) except material cost because in Throughput Accounting material cost is considered to be Variable (upon which our decision-making depends) and other costs are considered to be Fixed.

    While Factory hours is the Total Time available (ie. Bottleneck hours) for the factory to be working those hours?

    October 12, 2021 at 7:14 am #637518
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49595
    • ☆☆☆☆☆

    Yes – both are true.

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