Significance of Throughput Process Theory Theory of Constraints Free Essay Example, 2750 words

Mr Bragg strongly believes that Throughput Accountancy is now being used at a much more enormous level than 20 years ago when this fundamental was created by Eliyaho M. Goldratt. Companies that use modern management techniques compulsorily use the theory of Throughput Accountancy to forecast some chief management moves. (Bragg, 2007 pp. 39-45) Further in his book Mr Bragg discusses the importance of Throughput Accountancy and contrasts both the concepts Throughput vs. Cost, and provides his view, which as the title says is eminently Throughput Accountancy. This was primarily due to the fact that according to Mr. Bragg, Cost Accountancy focuses on product costs, whereas Throughput Accounting focuses on increasing the profit. (Bragg, 2007 pp. 39-45) Authors Mike Bendrey, Michael Bendrey, Roger Hussey, and Colston West (2003) discuss a completely new concept where the deny that Throughput Accountancy is an alternative to the Cost Accountancy principles, and state that Throughput Accoun ting is not possible without using some segments of the costing principles (Bendrey, et al. , 2003 pp. 14-20). Based on this ratio and some other prominent facts the authors believe that Cost and Management Accounts are interrelated and one cannot be possible without the other. We will write a custom essay sample on Significance of Throughput Process Theory & Theory of Constraints or any topic specifically for you Only $17.96 $11.86/page