ACCA Applied Skills · Performance Management · Throughput accounting
Which statement about a non-bottleneck resource in a throughput accounting system is correct?
Extra output from a non-bottleneck resource beyond the bottleneck's rate just builds work-in-progress inventory and does not raise system throughput, because overall output is limited by the bottleneck.
- AIt should be run at full utilisation to minimise unit cost
- BAdditional output from it beyond the bottleneck's rate only builds inventory and does not increase throughputCorrect
- CImproving its efficiency always raises throughput for the whole system
- DIt should be the first resource to receive extra capacity investment
Explanation
Throughput of the system is limited by the bottleneck. Running a non-bottleneck faster than the bottleneck can process simply creates work in progress. Improving it does not raise system throughput unless it becomes the constraint.
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