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(1) In Throughput accounting we have factory hours as a limiting factor. So factory hours refer to machine hours and labour hours because they two are the limting factor inside the factory production.(correct?)
(2) These are all the limiting factors in real-life such as: machine hours, labour hours and material kilos?
1. Not correct. Labour hours and machine hours do not have to be the same.
2. Correct, but that is not throughput accounting. Other limiting factors are dealt with using key factor analysis.
(1) I mean factory hours can be either machine hours OR labour hours because they both are used in a factory. That’s is why we call them “factory hours”.
So it could be either one of them that is refer to factory hours. correct?
YOU mean to say that we must use key factor analysis whenever anything could be a limiting factor.
BUT we must use throughput accounting when the limiting factor is only machine hours.
Is there any particular reason for this?
Secondly, Is this related to the exam only or you are saying that in real life we cannot use throughput accounting in a situation where labour hours is a limiting factor (other than machine hours)?
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