throughput accounting
throughput accounting An approach to short-term decision making in manufacturing in which all conversion costs are treated as though they were fixed and products are ranked if a particular constraint or scarce resource exists. Decisions are made using the throughput accounting ratio (TAR) as follows:
where
and
More recently, throughput accounting has been applied in more general areas of management accounting.
- concurrent engineering
- condition
- conditionality
- conditional sale agreement
- Confederation of British Industry
- conference lines
- conferencing
- confidentiality clause
- confirmation note
- confirmed letter of credit
- confirming house
- conflict management
- conflict of interests
- confused positioning
- conglomerate
- conjoint analysis
- connected person
- consequential-loss policy
- conservatism
- consideration
- consignment stock
- consignor
- consolidated accounts
- consolidated annuities
- consolidated financial statements