ACCA PM Syllabus B. Specialist Cost And Management Accounting Techniques - Improving a TPAR - Notes ^{2 / 3}

Management should focus attention upon improving the throughput accounting ratio. If they can do this then higher levels of profit will be achieved.

Options to improve the TPAR include: -

1. Increase the selling price

2. Reduce material costs per unit

3. Reduce total operating expenses – this will reduce the total factory costs

4. Improve productivity so throughput will increase.