In bpp kit there was a question.in that to find total factory costs the direct labour budget for the year was also taken .why is it so?question number is 34 in new kit
Ask the Tutor ACCA PM
Throughput
3y ago#1I do explain this in my free lectures!!!
Throughput accounting assumes that all costs except for materials are fixed. Therefore whatever labour costs are budgeted will be fixed and be part of the total factory cost.
Do watch the lectures - they are a complete free course and cover everything needed to be able to pass the exam well :-)
Sign into reply to this topic.