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Limiting Factor

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Limiting Factor

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 27, 2018 at 8:37 pm #492449
    xiiaolih
    Member
    • Topics: 65
    • Replies: 42
    • ☆☆

    Hello Mr. John,

    1. Can I ask what are the assumptions
    usually made when determining a
    production plan where limiting factors
    are present?

    Is that the same assumption with cost-volume profit analysis?

    2. What are the problems will occur when we prioritise production?

    Thanks sir ^^

    December 28, 2018 at 9:35 am #499386
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    1. Constant selling price and variable cost per unit. Constant use of limited resources per unit.

    2. It depends on the circumstances – there is no particular reason why there should be a problem!

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