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Hello Tutor hope you are doing well.
My question relates to SWEET TREATS BAKERY (DECEMBER 2016) Kaplan Kit.In Requirement 3 of the question Sweet Treats Bakery has done a detailed review of its products, costs and processes and has identified potential actions to improve its throughput accounting ratio (TPAR).
Which of the following statements will improve the throughput accounting ratio (TPAR)? Place a tick in the boxes in the table below.
Does the question asks about TPAR of each of my product or an average TPAR of the organisation as a whole.
Which Kaplan Study Kit has asked. Which is calculated as. Average Throughput earned from all product per unit of bottleneck Resource ÷ Total Operating Expenses per units of Bottleneck Resource
The Average Throughput earned per units of bottle neck resources has been calculated as
Total Throughput earned from products based upon their ranks ÷ Total Units of Bottleneck Resource Used.The question is asking:
Say you are ranking the products, you look at the TPAR figures to reflect differences in costs between the three products.
So say one was less than 1. How could it be improved?A bulk discount and rent is reduced both lower costs and improve TPAR.
Giving a discount will reduce revenue and thus the TPAR and additional demand does not impact TPAR as it’s not a restriction.
So it is asking about TPAR or Throughput per unit of Bottleneck Resource of a product.
I mistook it as Average TPAR of the company. Thankyou Tutor 🙂
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