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Limiting Factor Analysis

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

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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    Posts
  • November 21, 2019 at 9:37 am #553264
    nzrn89
    Participant
    • Topics: 37
    • Replies: 15
    • ☆☆

    Hi Sir,

    I was wondering for Limiting Factor Analysis we will rank the products based on contribution per limiting factor.

    But what if there is a specific fixed costs? Will we have to minus the selling price with the specific fixed costs as well before we get to the ranking

    Thank you so much

    November 21, 2019 at 1:29 pm #553298
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Possibly, but the approach very much depends on the exact wording of the question.

    If you are referring to either a past exam question or a question in the BPP Revision Kit, then say which one and I will explain.

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