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The manager of Ice Sculpting Co. believes that too much material is being wasted during downtime. She researched, and found throughput accounting to be an adequate alternative. However, she wasn't sure if all that
she read was accurate.
Which of the following statements are TRUE when using Throughput Accounting? Select ALL that apply.
Suggested Answer: A, C, D
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40 comments · newest first
DE
Derick
11 months ago
E? Really? Operating at full capacity with bottlenecks sounds risky!
HE
Herman
11 months ago
D is correct, fixed costs are a key part of throughput accounting.
AL
Albert
11 months ago
C seems off, sometimes inventory can be good for business.
DE
Dean
12 months ago
B is spot on, not all sales translate to profit.
LE
Leonard
12 months ago
A is definitely true, no demand means no point in producing.
AL
Albina
1 year ago
I have a vague recollection that D is a common point in throughput accounting, but I'm not confident about E; it seems counterintuitive to ignore bottlenecks.
HO
Holley
1 year ago
I practiced a question similar to this and I think C is also true; having too much inventory can tie up resources and cash flow.
CA
Carlee
1 year ago
I'm not entirely sure, but I feel like B is correct because not all sales translate directly to profit, especially with variable costs involved.
YU
Yuki
1 year ago
I remember something about demand driving production in throughput accounting, so I think A might be true.
NO
Novella
1 year ago
Ah, this is a great opportunity to apply what I've learned about throughput accounting. I've got a solid strategy for tackling this question.
AL
Altha
1 year ago
I'm a bit unsure about the fixed costs part. I'll need to review that concept before selecting my answers.
BR
Brande
1 year ago
Okay, I've got a good handle on throughput accounting from my studies. I'm confident I can identify the true statements here.
DO
Dorothy
1 year ago
This question seems straightforward, but I want to make sure I understand the key principles of throughput accounting before selecting the answers.
RO
Ronny
1 year ago
Hmm, the wording on some of these options is a bit tricky. I'll need to think carefully about the implications of each statement.
JE
Jeanice
1 year ago
This seems like a straightforward project management question. I'll focus on the key terms like "track project progress" and "against what was planned" to identify the best answer.
SH
Shawnda
1 year ago
I'm confident I know the answer to this one. The terms of reference would be outlined in the Programme Brief.
IL
Ilona
1 year ago
I practiced a similar question recently, and I feel like convertible bonds might not fit the definition of marketable securities.
RO
Rolande
2 years ago
I'm just hoping the exam question doesn't ask us to juggle ice sculptures. That would be a real 'meltdown' of a question.
YO
Yoko
2 years ago
This is a classic case of 'work smarter, not harder'. Throughput accounting is the way to go, instead of just blindly producing.
HA
Hana
2 years ago
That's true! Throughput accounting really helps in optimizing production and reducing waste.
EV
Evan
2 years ago
E) Departments should be operating at full capacity regardless of bottlenecks
GE
Genevive
2 years ago
C) Stocking up on inventory is bad for business.
ME
Mertie
2 years ago
B) Not all sales equal to profit
VI
Vi
2 years ago
E is false. Throughput accounting is all about identifying and managing the bottleneck, not maximizing capacity everywhere.
CA
Catarina
2 years ago
E is false. Throughput accounting is all about identifying and managing the bottleneck, not maximizing capacity everywhere.
BE
Benton
2 years ago
C) Stocking up on inventory is bad for business.
MU
Muriel
2 years ago
B) Not all sales equal to profit
VA
Vallie
2 years ago
I think option C is true too. Stocking up on inventory ties up cash that could be used elsewhere.
CO
Cortney
2 years ago
That's a good point, Devora. Option B does make sense in the context of throughput accounting.
DE
Devora
2 years ago
I believe option B is also true because not all sales contribute to profit.
AR
Armanda
2 years ago
D is also true. Throughput accounting considers only variable costs, treating everything else as fixed.
FA
Fausto
2 years ago
A, B, and C are definitely true. Throughput accounting focuses on maximizing throughput, not minimizing costs. No point in producing if there's no demand.
LE
Lemuel
2 years ago
C) Stocking up on inventory is bad for business.
SE
Serina
2 years ago
B) Not all sales equal to profit
OW
Owen
2 years ago
A) If there is no demand, then there should be no production.
DA
Daniel
2 years ago
Not all sales equal to profit
TH
Theola
2 years ago
If there is no demand, then there should be no production.
HE
Herminia
2 years ago
A, B, and C are definitely true. Throughput accounting focuses on maximizing throughput, not minimizing costs. No point in producing if there's no demand.
VA
Vallie
2 years ago
I agree with Cortney, option A seems like a logical choice.
CO
Cortney
2 years ago
I think option A is true because it makes sense to not produce if there is no demand.