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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › profit calculations
When finding maximum profit in throughput, total throughput is calculated using maximum demand but total vc is calculated using estimated production. Why can’t we use maximum demand in vc?
Have you not watched my free lectures on throughput accounting, because I stress and explain this point – it is the whole basis of throughput accounting!!
With throughput accounting we assume that only materials are a variable cost and that all ofter variable costs are in fact fixed.
