- 3 Marks
MA – April 2022 – L2 – Q2b – Advanced variance analysis
Calculate and comment on the Throughput Accounting Ratios of three products for Drogo.
Question
Drogo uses the Throughput Accounting technique for efficient allocation of scarce resources. In the second quarter of 2021, the throughput per bottleneck resource for its three products were given as follows:
- Product A: GH¢4
- Product B: GH¢6
- Product C: GH¢9
The total factory cost was GH¢67,500, and the bottleneck resource was 15,000 machine hours.
Required:
Calculate and comment on the Throughput Accounting Ratios of the three products. (3 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Bottleneck Resources, Profitability analysis, Throughput Accounting
- Level: Level 2
- Topic: Advanced variance analysis
- Series: APR 2023
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