TA

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    amrita
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    wanted to ask, whats the usefulness of TA accounting..
    also whats the differences between in the contribution of TA and marginal costing??


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    John Moffat
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    Throughput accounting is useful when the production is limited due to time constraints.
    The difference is that in throughput accounting all variable costs except materials are regarded as being fixed, so the ‘contribution’ (or throughput) becomes selling price less materials.


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    amrita
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    thanks!!!


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    John Moffat
    Keymaster
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    You are welcome.

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