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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput accounting
Dear John,
In regres to q20 ‘Corrie’ in bpp revision kit could you please explain to me how the bottleneck is calculated here? I don’t understand the logic behind the answer at the back.
I calculated 60/1200units which gives 0.05min but I don’t understand why we multiply it by $80 where in all of the previous examples we were deviding throughput by the ‘problem’.
Thank you
They are not multiplying 0.05 minutes by 80!
Each unit takes 0.05 minutes, which is 0.05/60 hours (because there are 60 minutes per hour).
Therefore the throughput return is 80 / (0.05/60) which is 96,000