throughput per unit

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September 12, 2020 at 4:06 pm #585357
Noah098
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when calculating throughput per unit, why do we use sales less ‘direct material purchased’ instead of ‘direct material used’?
September 12, 2020 at 5:15 pm #585368
John Moffat
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You mean the throughput return per unit.

Throughput accounting assumes a JIT approach and therefore inventories should be insignificant.
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