Limiting factor and Parent company: Difference between pages

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imported>Doug Williamson
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''Cost and management accounting''. 
A parent company (investing company) controls a subsidiary.
 
A limiting factor is an input resource which is scarce.
 
Also known as a ''scarce resource'' or ''key factor''.
 
 
In different simple situations the most important limiting factor may be skilled labour, a physical resource, time, or something else.
 
In practice there may well be multiple limiting factors.
 
 
In a simple case with a single limiting factor, total contribution and total profit are maximised by focusing on the production that produces the greatest contribution per unit of the limiting factor.




== See also ==
== See also ==
* [[Contribution]]
* [[Group]]
* [[Contribution analysis]]
* [[Group accounts]]
* [[Factors of production]]
* [[Letter of comfort]]
* [[Production possibility curves]]
* [[Parent currency]]
* [[Scarcity]]
* [[Simple investment accounting]]
* [[Sister company]]
* [[Subsidiary]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]

Latest revision as of 21:47, 3 December 2022

A parent company (investing company) controls a subsidiary.


See also