Solution-Find which the theory of constraints suggest

Find which the theory of constraints suggest

Assignment Help Cost Accounting

Reference no: EM132714056

Ethel Company produces and sells a product with the following unit cost:

Prime costs ` P10

Variable indirect manufacturing costs 6

Fixed indirect manufacturing costs 4

Variable manufacturing costs 8

Fixed marketing costs 3

Total unit costs P 31

The company is considering whether to continue producing the product or simply buy it from outside supplier. It has found a supplier which can produce the product per the company's specifications.

Problem 1: The theory of constraints suggest that improvement efforts should be focused on the company's

d. non-constraints

a. value-added activities

c. constraint

b. non-value-added activities

Reference no: EM132714056

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Find which the theory of constraints suggest

Reference no: EM132714056

Reference no: EM132714056

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