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A company has recently adopted throughput accounting as a performance measuring tool.
Its results for the last month are shown below.
Units produced 1,150
Units sold 800
Materials purchased 900 kg costing $13,000
Opening material inventory used 450 kg costing $7,250
Labour costs $6,900
Overheads $4,650
Sales price $35
There was no opening inventory of finished goods or closing inventory of materials.
What is the throughput accounting ratio for this product?sir can you explain me this?
You must have an answer in the same book in which you found the question, and so you should ask about whatever it is in the answer that you are not clear about, and then I will help you.
Have you watched my free lectures on throughout accounting? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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