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Throughput Accounting - Research Paper Example

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Throughput Accounting Name University Name Table of Contents Introduction .1 Throughput Accounting…

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Throughput Accounting

The purpose of these techniques is to develop a framework through which efficiency and performance of organizations should touch their peak level. In addition, such techniques must not only increase sales revenues, but also should be able diminish cost of doing business. Throughout the history of management accounting, a number of cost accounting techniques also have been developed to focus on the productivity and performance through fixed overhead costing methods, Absorption costing methods, Activity Based Costing (ABC), however a little amount of concentration has been provided towards the constraints and problems being faced by organizations. History has witnessed that the performance of organizations is largely challenged by the constraints and these are the factors that have really potential to influence the performance of the organizations. Thanks to the theory of throughput accounting that has largely focused to constraints being faced by organizations. Constraints could be a policy, a material constraint, time constraint and so on. ...
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