Thorughtput accouting is most suitable for which of the following A) Short term decision making in a business Which subcontract all its manufacturing activity B) short term decision making in a highly automated manufacturing environment We know that throughput is suitable for short term and answer is B My question is why not A just because of subcontracting nature ?
Yes. Throughput accounting is so as to make the best use of machine time available, but if they are subcontracting the manufacturing then they will not be using any machine time.