Throughput accounting

Throughput accounting supports short-run constraint management by focusing on throughput generated by scarce-resource time. In the conventional exam model, throughput is sales revenue less direct material cost, with other operating costs treated as broadly fixed over the short period. Rank products by throughput per bottleneck unit when that model applies. It differs from contribution, which deducts all variable costs, and its assumptions should be evaluated rather than treated as universal cost behaviour.