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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › throughput accounting
is throughput accounting short term decision making or long term decision making ?
i got this in my exam i know its short term but how? when in short term decision making topic there were topics like relevent costs , make or but decisions, bottleneck , where in these are throughput accounting mentioned ?
The question is not asking which topic heading it appears under in the syllabus. It is asking whether it is relevant for short-term or long-term decisions. It is short-term because in the short-term it is reasonable to assume that most variable costs (apart from materials) will remain fixed (as I explain in my lectures on throughput accounting).