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Throughput accounting ratio

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

  • This topic has 3 replies, 2 voices, and was last updated 12 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • October 13, 2012 at 8:18 am #54650
    fish21cn
    Participant
    • Topics: 2
    • Replies: 2
    • ☆

    Dear Sir,

    Could you please help to specify whether there is any difference in the denominator of ratio ‘Return per factory hour’and ‘Cost per factory hour’?
    Per F5 paper note, it indicate the denominator of ‘Return per factory hour’ as ‘time on key resource’. Whileas to ‘Cost per factory hour’, it using ‘total time available on key resource’.

    October 13, 2012 at 2:18 pm #105474
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54697
    • ☆☆☆☆☆

    There is a big difference!

    The denominator of return per factory hour is the time on key recourse, per unit.

    The denominator of cost per factory hour is the total (limited) time available.

    Have you watched my lecture on this (on this website)?

    October 15, 2012 at 3:27 am #105475
    fish21cn
    Participant
    • Topics: 2
    • Replies: 2
    • ☆

    Dear John,

    Thank you for your explanantion.
    No, I haven’t watch your lecture. And I will do it now.

    October 15, 2012 at 5:33 pm #105476
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54697
    • ☆☆☆☆☆

    You are welcome 🙂

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