The goal of the Theory of Constraints and throughput accounting is to maximize production capacity in bottlenecks

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The goal of the Theory of Constraints and throughput accounting is to maximize production capacity in bottlenecks by a ranking of products that have

a. The highest selling price

b. The highest rate of contribution as a percentage of sales

c. The highest contribution (of sales less variable costs) per hour of bottleneck capacity

b. The highest throughput contribution (of sales less cost of materials) per hour of bottleneck capacity

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Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9781118037966

1st Canadian Edition

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

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