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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput accounting
Which of the following statements about throughput accounting and the theory of constraints is/are true?
(1) The theory of constraints suggests that when one bottleneck is overcome, another bottleneck will arise
(2) Throughput accounting aims to maximise the amount of non-bottleneck resources used
(3) In throughput accounting work in progress should be valued at the cost of materials only
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1,2 and 3
Which the statement number 3 is correct, I don’t understand sir ??
The answer is c
Statement 3 is true as, in throughput accounting, work in progress should be valued at the cost of materials only, aligning with the principle that only material costs are considered variable in the short term.