Management accounting | My Assignment Tutor

Jupiter Australasia Ltd hasrecently acquired the Kiewa Milk Co in north-east Victoria and you havebeen seconded there as part of yourmanagement accounting graduate role. The CEOof KiewaMilk Co has mentioned the term ‘production constraint’ to you on a number of occasions andyou are unsure what she is referring to. You decide to conduct your own research (which goesbeyond the text) to find out what a ‘constraint’ is in a manufacturing environment.Required:Discuss the notion of production capacity in a manufacturing environment. Your answershould discussthe different meanings oftheoretical capacity and practical capacity asthey areapplied inmanufacturing firms.Describe some of the constraints which may impact on the productive capacity of amanufacturing company. In your answer also address the ‘relevant range’ concept as it is appliedinmanagement accounting andasitrelatesto capacity constraints(300-450words).Please ensure that you properly reference allsources(including websites) and avoid simplycutting andpasting.

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