CVCAVerseSET B · Strategic Cost & Performance Management · 30 MCQs · 3 hrsLive · Recording
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Section A · MCQQuestion 1 of 302 marks· Theory of Constraints & Throughput Accounting
On card · 00:00:00 Expected · 00:01:30

MNO Ltd. uses throughput accounting in a Theory of Constraints (TOC) environment. The company has three product lines with the following data: Product M: Selling price ₹500, raw material cost ₹200, processing time at bottleneck 2 hours. Product N: Selling price ₹400, raw material cost ₹150, processing time 1.5 hours. Product O: Selling price ₹600, raw material cost ₹250, processing time 3 hours. Bottleneck capacity = 500 hours/month. Which product should be prioritized, and what is the maximum monthly throughput contribution?