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Throughput return per hour

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput return per hour

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • June 2, 2021 at 1:13 pm #622775
    edwin1294
    Participant
    • Topics: 6
    • Replies: 7
    • ☆

    Hi John, this question is from BPP Mock exam – question 4. I got the right answer correctly by calculating the marginal cost and then dividing it by bottleneck hour which is 0.1 (6 minutes converted into hour). but later realized that the 6 mins was actually divided by the conversion costs of $60. why did we divided it by the conversion cost? I’d thought that in order to get the return per hour we will need to convert the 6 mins to hour. Please can you help

    June 2, 2021 at 4:09 pm #622801
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    It is not divided by the conversion cost.

    It is divided by 60 because there are 60 minutes in an hour.

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