Throughput Accounting

Throughput Accounting

Learn How To Apply The Theory Of Constraints To Management Accounting. <P>The Theory of Constraints, a management philosophy derived from physics, assumes that constraints prevent organizations from achieving better performance. The Theory of Constraints (TOC) is based on a scientific method that has been developed and refined for nearly three decades by Dr. Eliyahu M. Goldratt. As a tool for business management, TOC is now accepted as a mainstream alternative to cost accounting. <P>Throughput Accounting <P>Reveals a new management tool for managerial accounting and shows an alternative path for other management practices. <P>Enables managers to quickly see if their decisions increase profitability. <P>Demonstrates some of cost accounting's flaws, and shows how these errors will lead to bad decision making. <P>Compares the paradigm of TOC-based throughput accounting with more conventional cost accounting methodologies and in the process, demonstrates a new way to solve the complex problems of modern management.