The Theory of Constraints, a management philosophy derived from physics, assumes that constraints prevent organizations from achieving better performance. The Theory of Constraints (TOC) is based on a scientific method that has been developed and refined for nearly three decades by Dr. Eliyahu M. Goldra...more
Cost accounting encourages poor behaviour for the sake of efficiency which upon closer examination actually deteriorates. Close compliance with cost accounting principles will lead to inflated inventory, deteriorating cash flow and lead times in the tubes.
I encourage cost & inventory accountants to read this book twice as myths dont die easily
The thing that rings a few days later is that cost account is antithetical to continuous improvement.