5 Throughput accounting 5.1 Throughput accounting
Background
§ You should already be familiar with the use of key factor analysis to allocate scarce resources where there is one limiting constraint.
§ In such cases alternatives may be ranked by examining the contribution per unit of scarce resource for each option.
§ In throughput accounting traditional assumptions underlying contribution are challenged and the scarce resource relates to production bottlenecks.
Main assumptions:
§ The only totally variable cost is the purchase cost of raw materials and components that are bought from external suppliers.
§ Direct labour costs are not wholly variable. Many employees are salaried and even if paid at a rate per unit, are usually guaranteed a minimum weekly wage.
§ Fixed costs are ‘less fixed’ than they might have been in the past.
Definitions来自www.Examw.com
Throughput
Throughput is the rate of converting raw materials and purchased components into products sold to customers.
Or
In money terms, throughput can therefore be defined as the extra money that is made for an organisation from selling its products:
Throughput = Revenue – totally variable costs
Since totally variable costs are normally just raw materials and bought-in components, it is often convenient to define it as:
发表于 2012-2-23 17:09:42
