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Q1.2 When machine time is a binding constraint on production output, which one of the following will have NO EFFECT on the throughput accounting ratio for a product that the machine is used to manufacture ?
A Obtaining a lower purchase price for materials for the product
B Reducing factory costs
C Reducing the machine time per unit to make the product
D Increasing the selling price of the productAnswer is C.
I don’t think it’s correct because : reducing the machine time per unit will make throughput per unit of machine time higher and no effect to factory cost per unit of machine time , so TPAR will be higher.
How do you think about that ? BPP makes a lot of mistakes in their books lately
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