In example 1 you did(25-8-5-7)=contribution
But in example 2 you did(selling price -just material) may I know why please sir I'm struggling thnxx
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regarding chapter 5 throughput accounting
11y ago#1Have you watched the lecture? (There is no point in using the course notes without the lectures - it is in the lectures that we work through the examples, explain what is happening, and expand on them.)
Example 1 is conventional key factor analysis where we use contribution.
Example 2 is throughput accounting where we assume that all costs are fixed with the exception of materials.
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