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John Moffat.
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Natasha1996
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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?
John Moffat
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Yes – both are true.
Natasha1996
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