Single limiting factor, Cost Accounting

Single Limiting Factor

Where a single limiting factor exists for the decision making sequence may be implemented given as:-

- Compute the contribution per unit of limiting factor for every product

- Rank the products in order of size and contribution per unit of limiting factor

- Permit any minimum retention of less profitable products that is decided upon

- Use up the net units of the limiting factor in order to fulfill the forecast quantities in order of product ranking.

Posted Date: 2/7/2013 1:34:40 AM | Location : United States







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