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Section B - Case 1: AeroBlade Dynamics
AeroBlade Dynamics manufactures heavy wind turbine blades. They produce two models: Standard and Advanced. The factory operates a highly specialized molding machine which is the bottleneck resource. Total bottleneck hours available per month are 3,000 hours. Total factory costs (excluding direct materials) are $120,000 per month.
Data per unit:
Standard Blade: Selling Price = $200, Direct Material Cost = $80, Machine Hours = 2 hours.
Advanced Blade: Selling Price = $350, Direct Material Cost = $150, Machine Hours = 4 hours.
Calculate the Return per Factory Hour for the Advanced Blade. (Enter the number only)
ACCA · Question 20 · Specialist Cost and Management Accounting Techniques
Section B - Case 1: AeroBlade Dynamics
AeroBlade Dynamics is applying the Theory of Constraints (TOC). They have identified the molding machine as the bottleneck and decided on the product mix that maximizes throughput.
According to the 5 focusing steps of TOC, what is the immediate next step management should take?
Section B - Case 1: AeroBlade Dynamics
AeroBlade Dynamics is applying the Theory of Constraints (TOC). They have identified the molding machine as the bottleneck and decided on the product mix that maximizes throughput.
According to the 5 focusing steps of TOC, what is the immediate next step management should take?
Answer options:
Elevate the system's constraint by buying another molding machine.
Identify the system's constraint.
Subordinate everything else to the bottleneck decision.
Exploit the system's constraint.
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