THROUGHPUT ACCOUNTING

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August 3, 2017 at 2:45 am #400092
nzrn89
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Could you explain how TA is a performance measurement tool rather than a decision making tool?

Thank you sir
August 3, 2017 at 8:15 am #400185
John Moffat
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Throughput accounting is actually a decision making tool.

However it is primarily a performance measurement tool because the TPAR is a measure as to what extent each product is ‘covering’ the fixed costs, and it is this measure that is used to help make decisions.
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