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Throughput Costing.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput Costing.

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 23, 2021 at 7:52 am #638838
    7fsa
    Participant
    • Topics: 58
    • Replies: 40
    • ☆☆

    Dear Johh,

    How are you?
    I hope you are doing well,
    In Kaplan study text it’s mentioned the following,
    the total factory cost is the fixed production cost including labor.
    the total factor cost may be referred to as Operating expenses these are production/factory costs only. in the exam watch if question include costs not related to production (e.g Marketing) which wouldn’t be included in the ratio.
    My question is as follow,?
    Could you tell me what are the kind of costs which we should consider as a production costs?
    as known most of costs are classified according to the business activity.

    Thanks and regards,

    October 23, 2021 at 10:23 am #638874
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51543
    • ☆☆☆☆☆

    It is costs incurred in the factory – i.e. all costs of production (excluding of course the costs of materials).

    Have you watched my free lectures on this?

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