Scribd Logo
Upload

Welcome to Scribd!

  • Limiting Factors - Q1 - June 2022

    Uploaded by

    Marie Xavier - Felix
    4 views1 page

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    Limiting Factors - Q1 - June 2022

    Uploaded by

    Marie Xavier - Felix

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 1
    The following scenario relates to three requirements. ‘Tread Co manufactures sports shoes and clothing. tis a relatively small company and has a good reputation for producing igh quality products. In recent months, however, there have been an incceasing numberof customer complaints about ith Teaad Co's spots shoos. ‘Tread Co is profitable, but is finance director, who joined the company last year, belaves thera ara inefciencies ints ‘operations and consequently isnt as profitable as it could be. “The finance director bolleves that Tread Co's budgeting system is partly to blame for this. The company currently uses an but the nance director beleves activily-based budgeting would be more appropriate. He 's analysing the production process for sports shoes to suppot his suggestion, and has asked for your help in connection with tis. ‘Tread Co produces two ciferent siyles of sports shoe, the Deluxe and the Standard, and ithas contracts to supply these to several ig tal cans. Much ofthe producion process and produc EE Simian goods EET 0 0rece roughou the year ‘Operational data for each product is as follows: Deluxe Standard Monthly demand (pairs of shoes) 22.500 24,000 Pairs of shoes produced per production machine hour 280 300 Production batch size (pairs of shoes) 300 400 ‘Shipment batch size (pars of shoes) 125 150 The produton in or spots shoes hes

    You might also like