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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 8 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 4, 2018 at 6:09 pm #440166
    Avatarlaurytyte
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    Bpp revision kit says: reducing the machine time per unit will increase throughput per hour and factory cost per hour by the same proportion leaving the TA ratio unchanged. Could you please explain in more details.

    March 4, 2018 at 6:15 pm #440167
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    I know that the BPP Revision Kit says that, but it is not true 🙂

    Reducing the machine time per unit will increase the TA ratio (it increases the return per factory hour, but does not affect the cost per factory hour).

    March 4, 2018 at 6:20 pm #440168
    Avatarlaurytyte
    Member
    • Topics: 3
    • Replies: 1
    • ☆

    Thanks?

    March 5, 2018 at 10:10 am #440288
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Throughput accounting ratio’ is closed to new replies.

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