Free ACCA & CIMA online courses from OpenTuition

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

20% off ACCA & CIMA Books

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

Throughput Accounting Ratio

Forums › Ask CIMA Tutor Forums › Ask CIMA P2 Tutor Forums › Throughput Accounting Ratio

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Cath.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 23, 2017 at 11:26 am #408415
    robmcclay
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hi!

    When calculating total factory costs for the throughput accounting ratio, do you include the direct labour costs?

    I’ve seen some answers to questions that do and some that don’t?

    I believe that you do!

    Thanks,
    Rob.

    September 25, 2017 at 10:04 am #408584
    Cath
    Participant
    • Topics: 0
    • Replies: 448
    • ☆☆☆

    You are correct.
    In throughput accounting labour is always classed as a fixed cost so needs to go together with other production overheads to make total factory costs.

    Kind Regards
    Cath

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.