Limiting factor analysis technique: A literature review

Ibrahim Ali Bappa ,
Department of Accountancy School of management studies Federal Polytechnic Damaturu



Limiting factor analysis is a technique usually applied in the short term decisions. It is employed by management to curb the effect of shortages in limiting factor such as raw material, skilled labor, machine hours or market that may constraint the company from operating at full capacity. Virtually most organization faces the problem of shortages of factor input in one way or the other. This article analyses how the limiting factor analysis technique will help a firm in maximizing its long term profitability with a view to improving the value of the firm.