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Throughput

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • November 25, 2022 at 10:13 am #672478
    home001
    Participant
    • Topics: 7
    • Replies: 2
    • ☆

    Thorughtput accouting is most suitable for which of the following
    A) Short term decision making in a business
    Which subcontract all its manufacturing activity
    B) short term decision making in a highly automated manufacturing environment
    We know that throughput is suitable for short term and answer is B
    My question is why not A just because of subcontracting nature ?

    November 25, 2022 at 3:35 pm #672608
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 53348
    • ☆☆☆☆☆

    Yes. Throughput accounting is so as to make the best use of machine time available, but if they are subcontracting the manufacturing then they will not be using any machine time.

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