1-"Throughput accounting considers that time at a bottleneck resource has value, not elsewhere."
Sir idle time would be generated in non-bottleneck resource, wont that have a cost to the company too?
2-"Throughput accounting considers that the only variable costs in the short run are materials and components."
Your explanation would be much appreciated sir!
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Regarding the second statement we never consider components as direct material, as we never whether they are direct or indirect material. I mean the second statement is contentious. I dont know why it is true
5y ago#21. Time might well have a cost, but the statement refers to the value (not the cost) - i.e. the benefit.
2. Components would be regarded as direct material. For example, if you were making cars then every car needs an engine. The engine is one of the components.
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