throughput accounting

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Limitations of throughput Accounting

Throughput accounting is management accounting technique used as means of measuring performance according to theory of constraints (TOC). It is in fact consist of an assembly of techniques which has their goal the maximization of output from a production system.

Limitations of throughput accounting

  • Selling price could be uncompetitive
  • Material suppliers may not be reliable
  • Product quality is low
  • Need
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What is meant by throughput accounting?

Throughput accounting is management accounting technique used as means of measuring performance according to theory of constraints (TOC). It is in fact consist of an assembly of techniques which has their goal the maximization of output from a production system.

Put simply, a throughput accounting is simplified, principle based approach that offers managers supporting information for their decision making in … Read the rest