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Through put accounting/ key factor analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Through put accounting/ key factor analysis

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • February 1, 2023 at 6:42 am #677820
    JohnnySins
    Participant
    • Topics: 60
    • Replies: 38
    • ☆☆

    Sir in the lecture video we had machine hours as limiting factor. is it possible to have other limiting factors such as material. and what if there were 3 machine and one being bottleneck. how do we go about this kind of situation? or does the examiner always use machine hours?

    February 1, 2023 at 8:11 am #677825
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54821
    • ☆☆☆☆☆

    For throughput accounting the limiting factor is always machine hours. (With key factor analysis the limiting factor could be anything and will be given in the question).

    When there are several machines, then the calculations are done for the bottleneck machine in throughput accounting.

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