• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

throughput accounting

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

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by LMR1006.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 1, 2023 at 10:48 am #689234
    weekly
    Participant
    • Topics: 38
    • Replies: 39
    • ☆☆

    Hello Sir can you help me with this question please. The answer is fourth but i cannot understand why. it is from Bpp practice and revision kit

    A manufacturing company uses machine C, which is operational for five hours a day to manufacture four products: W, X, Y, and Z. Factory costs are $150,000 per day. The company uses throughput accounting and its objective is to maximize profits. Information relating to these products is as follows:

    Product Production rate per machine hours (units) Selling price per unit ($) Material cost per unit ($) Conversion cost per unit ($)
    W 200 350 120 40
    X 500 190 95 25
    Y 400 270 160 20
    Z 350 215 75 35

    If the company is not able to increase the availability of machine C’s operational hours, what is the production ranking of product Y?

    August 1, 2023 at 9:09 pm #689256
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1511
    • ☆☆☆☆☆

    As the products are all produced in the same factory the cost per machine hour will be the same across all the products so they can be ranked on their throughput return per machine hour (otherwise they should be ranked on their throughput accounting ratio).

    Prod W
    Prod rate ph. 200
    Throughput pu 230
    Throughput ph 46000

    Prod X
    Prod rate ph. 500
    Throughput pu 95
    Throughput ph 47500

    Prod Y
    Prod rate ph. 400
    Throughput pu 110
    Throughput ph 44000

    Prod Z
    Prod rate ph. 350
    Throughput pu 140
    Throughput ph 49000

    Rank then in order of throughput ph

    46000. 47500. 44000. 49000

    W. X. Y. Z

    3rd. 2nd. 4th. 1st

    August 6, 2023 at 4:48 pm #689477
    weekly
    Participant
    • Topics: 38
    • Replies: 39
    • ☆☆

    Thank you so much for clarifying this question for me. Thank you

    August 7, 2023 at 4:35 pm #689543
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1511
    • ☆☆☆☆☆

    You are most welcome

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Salimbek909 on The nature and structure of organisations – ACCA Paper BT
  • Sefater on Chapter 3 – Property Income and Investments – Individuals TX-UK FA2023
  • adityachaudhry on Discounted cash flow techniques (part 3) – ACCA (AFM) lectures
  • nuripamir on ACCA Administrative Review
  • Jherddie on CIMA E3 Chapter 8 Test

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in