Business Principles, Tools, and Techniques in Participating in Various Types...
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Throughput accounting
1. Girish M C , Asst Prof of Commerce, Panampilly Memorial Govt
College, Chalakudy
2/6/2020 1
Girish M C, Asst Prof of
Commerce, Panamipilly Memorial
Govt College, Chalakudy.
2. ๏ฝ Through put accounting is a management accounting approach
that provides managers with support in decision-making aimed
at increasing a companyโs profitability. It is relatively new
method of management accounting that identifies factors that
limit the company in achieving its goals and then focuses on
simple measures that drive behaviour in key areas towards
reaching organisational goals. It is a profit focused accounting
and new principles of throughput accounting.
2/6/2020 2
Girish M C, Asst Prof of
Commerce, Panamipilly Memorial
Govt College, Chalakudy.
3. ๏ฝ 1. Inventory terns (Through put divided by
Inventory )
๏ฝ 2.Productivity (Throughput divided by
operational expenses)
๏ฝ 3.Throughput per employee ;
๏ฝ 4.Throughput per rupee of working capital
๏ฝ 5.Incremental throughput with incremental
operational expenses;
๏ฝ 6.Estimated excess inventory-rupee-days.
2/6/2020 3
Girish M C, Asst Prof of
Commerce, Panamipilly Memorial
Govt College, Chalakudy.
4. ๏ฝ 1. Return per factory hour = Throughput per
unit/ Product time on bottleneck resources
(Machinery or facility)
๏ฝ 2. Cost per Factory hour =Total Factory Cost
/ Total bottleneck resource time available.
๏ฝ 3.Throughput accounting ratio (TPAR)=
Return per factory hour /Cost per Factory
hour.
2/6/2020 4
Girish M C, Asst Prof of
Commerce, Panamipilly Memorial
Govt College, Chalakudy.
5. ๏ฝ Thank you
2/6/2020 5
Girish M C, Asst Prof of
Commerce, Panamipilly Memorial
Govt College, Chalakudy.