ACCA PM · Chapter 4 · Question 7 of 10
Which of the following statements is consistent with the principles of throughput accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Direct labour costs are treated as part of fixed factory costs
Explanation
Throughput accounting assumes labour is a fixed cost in the short term, so all costs other than materials are fixed factory costs. It discourages building inventory except before the bottleneck, values inventory at material cost only, and ranks products by throughput per bottleneck unit rather than per unit.
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