[Throughput Accounting] [By: Corbett, Thomas] [December, 1998]

by Thomas Corbett

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. Goldratt. As a tool for business management, TOC is now accepted as a mainstream alternative to cost accounting.Throughput AccountingReveals a new management tool for managerial accounting and shows an alternative path for other management practices.Enables managers to quickly see if their decisions increase profitability.Demonstrates some of cost accounting's flaws, and shows how these errors will lead to bad decision making.Compares the paradigm of TOC-based throughput accounting with more conventional cost accounting methodologies and in the process, demonstrates a new way to solve the complex problems of modern management.

Genres: Business, Management

Unknown Binding

First published December 1, 1998

Reviews

[Kostiantyn · Rating 5 out of 5]

Thomas Corbett's "Throughput Accounting" was the first book I read on the Theory of Constraints, and for someone who isn't prepared, it is just mind-blowing. The author uses great examples and delivers the message in a very easy-to-understand form. On top of all that, it serves as a crucial bridge between TOC and Cost Accounting. So, it’s a must-read for all Lean Six Sigma professionals.

[Denis Vasilev · Rating 4 out of 5]

Учет по ТОС, разумное

[Anthony Awerbuch · Rating 4 out of 5]

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 · Rating 3 out of 5]

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.

https://www.jackvinson.com/blog/2013/...