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The variable cost for throughput is only material cost, right?
Why the other variable costs were included in the calculation for contribution?
The contribution of product :-A Contribution $25-$8 =$17
B Contribution $28 – $20 = $8Why I checked the answer, the other variable costs were included in the contribution?
I thought the throughput per unit = Sales venue – Direct Material.
In throughput concept, all costs are fixed (operating expenses) except Direct Material (the only variable cost). Am I correct?Example 1 is not throughout accounting. Read the introduction paragraph and see the heading above the example!!!
It would seem that you are using the notes without watching the free lectures. The notes are lecture notes and it is in the lectures that I explain and expand on the notes.
If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA approved publishers and study from there.
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