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throughput accounting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › throughput accounting

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • November 8, 2022 at 7:13 pm #671075
    afrazali10
    Participant
    • Topics: 18
    • Replies: 17
    • ☆

    is throughput accounting short term decision making or long term decision making ?
    i got this in my exam i know its short term but how? when in short term decision making topic there were topics like relevent costs , make or but decisions, bottleneck , where in these are throughput accounting mentioned ?

    November 9, 2022 at 8:59 am #671114
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    The question is not asking which topic heading it appears under in the syllabus. It is asking whether it is relevant for short-term or long-term decisions. It is short-term because in the short-term it is reasonable to assume that most variable costs (apart from materials) will remain fixed (as I explain in my lectures on throughput accounting).

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