ABC Company uses throughput accounting. Machine time is the current binding constraint on production output, and management are looking for ways to increase the throughput accounting (TA) ratio for a product that the machine is used to manufacture. Which of the following will have NO effect on the TA ratio?
A、Increasing the selling price of the product
B、Obtaining a lower purchase price for materials for the product
C、Reducing factory costs
D、Reducing the machine time per unit to make the product
A、Increasing the selling price of the product
B、Obtaining a lower purchase price for materials for the product
C、Reducing factory costs
D、Reducing the machine time per unit to make the product
【参考答案及解析】
Reducing material costs or increasing the sales price will increase throughput per machine hour. Reducing factory costs will reduce the factory cost per machine hour. These will increase the TA ratio. Reducing the machine time per unit will increase throughput per hour and factory cost per hour by the same proportion, leaving the TA ratio unchanged.
Reducing material costs or increasing the sales price will increase throughput per machine hour. Reducing factory costs will reduce the factory cost per machine hour. These will increase the TA ratio. Reducing the machine time per unit will increase throughput per hour and factory cost per hour by the same proportion, leaving the TA ratio unchanged.