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slack

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › slack

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • December 4, 2017 at 11:10 am #420119
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    The management accountant has calculated that the slack for material is 500 kg per week.

    What does a slack of 500 kg per week for material x represent?

    A. The quantity of material x that is available each week.
    B. The excess of material x available over production needs.

    1. The answer is B
    2. Could you explain why what’s wrong with A?

    December 4, 2017 at 3:16 pm #420238
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    The material available is the total available. They will be using some of it for production – the slack is the amount that is available but that they are not using.

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