Limiting Factor

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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December 27, 2018 at 8:37 pm #492449
xiiaolih
Member
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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
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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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