Throughput accounting is a management accounting approach that focuses on the throughput of cash from sales and the truly variable costs of producing an additional unit of a product or service. It is designed to support management decision making. Throughput accounting is particularly useful for identifying products that are generating the most cash flow for each incremental unit of production.
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Function | | Definition | A method of management accounting focused on truly variable costs such as the material and labor required to produce a unit of production. | Value | Provides a way to measure certain management initiatives such as eliminating waste in a production process. | Related Techniques | Activity Based Costing |
Management Accounting
This is the complete list of articles we have written about management accounting.
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A list of management accounting examples.
A management approach that examines the constraints that are holding an organization back.
A definition of target costing with examples.
A definition of continuous improvement with examples.
An overview of takt time with calculation formula and example.
The difference between lead time and cycle time explained with an example.
How to calculate productivity with 3 examples.
A definition of complexity cost with examples.
The definition of run rate with calculation examples.
The definition of managerial economics with examples.
A list of decision making techniques.
The observation that groups may make collective decisions that are viewed as wrong or irrational by each individual member of the group.
A complete guide to the decision making process.
The difference between rational thought and logic.
The common types of uncertainty in decision making and strategy.
A definition of information costs with examples.
A definition of reverse brainstorming with examples.
The definition of decision fatigue with examples.
Taking a position that you do not necessarily agree with for the purposes of argument.
The definition of paradox of choice with examples.
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