Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › How does reducing machine time per unit increase factory cost per hour?
- This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
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- October 15, 2018 at 5:47 pm #478585
hi sir
How does reducing machine time per unit increase factory cost per hour?
is it because now that if machine time per unit is decreased we have more time to produce extra unit than before when machine time per unit was higher?thank you
October 15, 2018 at 6:51 pm #478622Generally speaking it does not increase the factory cost per hour. I am guessing that you are asking this because of a question in the BPP Revision Kit, but their answer is wrong.
It would only be the case if there was limited demand and therefore less machine time would mean fewer hours worked and therefore a higher cost per hour.
However, that is not the case in throughput accounting questions – it is the time that is limited (not the units) and therefore the total time available does not change.October 15, 2018 at 7:00 pm #478630thank you
and yes i am using the bpp revision kit, i hope the kit is enough to pass the examsOctober 15, 2018 at 7:03 pm #478631You are welcome 🙂
Practice using the Revision Kit is vital, but that alone is not enough. You must study thoroughly first. My free lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well. If you are not watching the lectures then you must buy a Study Text from one of the ACCA approved publishers and study from there.
October 15, 2018 at 7:22 pm #478636yes sir, i have watched all your lectures and i am also using the free lecture notes that you have provided. because of the large amount of chapters in the exam, i have a tendency to forget, which is why i sometimes have doubts and questions. hope everything gets cleared before the exam
thank you so much for all the help you giveOctober 16, 2018 at 6:10 am #478686You are welcome 🙂
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