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Throughput Accounting

4.16  ·  Rating Details ·  32 Ratings  ·  2 Reviews
Learn How To Apply The Theory Of Constraints To Management Accounting.

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

Unknown Binding, 160 pages
Published January 1st 1999 by North River Press (first published December 1st 1998)
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Anthony Awerbuch
Nov 01, 2010 Anthony Awerbuch rated it really liked it
Now I understand why Dr Eli Goldratt and the Theory of Constraints community have a distaste for Cost Accounting. Another sacred cow trashed.

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
Jack Vinson
Jan 23, 2013 Jack Vinson rated it liked it
Wonder where Throughput Accounting is today in the business world. Enjoyable, slim tome on the topic. A little strident on the Theory of Constraints bandwagon.

The thing that rings a few days later is that cost account is antithetical to continuous improvement.
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