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# value is not created until products are sold # there is no such P&L account as "revenues from production" (i.e. revenues from goods made and stored as inventory) # costs of the not sold production (represented by material costs) are treated as variable and depress the throughput, as well as the throughput accounting ratio. # managers are encouraged to use the bottleneck resource to manufacture products for which there is demand, as in a JIT environment # organizations should adhere to production schedules and it is important to get things right from the first time # total factory costs, overheads shoud be allocated per products based on the usage of each product of the bottleneck resource. # management and accounting staff should get back to an understanding of what is happening on the shop floor and adapt performance measurements accordingly.
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Advantages of cost accounting?
Cost accounting is a wonderful tool for the management to measure how the company resources has been utilized. It is very useful for the end users also.
What are the advantages and disadvantages of fair value accounting?
Advantage = its fair Disadvantage = some people don't like fair things
What are advantages and disadvantages of having a uniform accounting standard globally?
One of the advantages of having a uniform accounting standard is knowing that you are comparing apples to apples if you were comparing two companies results. For example, if you were comparing a US company that used US GAAP and a company in India which used different accounting standards, you could not be sure that any comparisons would be based on the same methodology. With a uniform accounting standard, all companies would be required to value/measure and report their results the same way, therefore you could do a better comparison between the two companies.
Disadvantages of computerised accounting system?
Disadvantages; 1. You must learn the software. 2. The software will have bugs, so sometimes it will not work properly. The advantages far out-weigh the disadvantages.
What is the Difference between throughput and output?
Throughput: The rate at which an amount of work or data can be processed. It is a measure of comparative effectiveness of a process or an operation. Output: Quantity produced, created, or completed. It is a measure of productive capacity of a machine, factory, industry, company, or an individual.
What are the Disadvantages of throughput accounting?
The disadvantages of throughput accounting is that it is very costly. The system might require the retraining of the staff which is a costly exercise.
What are the disadvantages of throughput?
The disadvantages of throughput accounting is that it is very costly. The system might require the retraining of the staff which is a costly exercise.
What are advantages and disadvantages of branch accounting?
advantages of branch accounting
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advantages of price level accounting
What are advantages and disadvantage of harmonisation of international accounting standards?
what are advantages and disadvantages of harmonisation of accounting standards
Advantages and disadvantages of cost accounting?
cost accounting advantage & disadvantage
Advantages of historical cost accounting?
strength of historical cost accounting
Benefits of Conceptual framework in accounting?
advantages of conceptual framework in accounting
What are theAdvantages of accounting information disclosure?
what are the advantages of accounting information disclosure?
What are the advantages of responsibility accounting?
responsibility
What phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called?
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What are the advantages of modified accrual accounting?
advantage modified accrual accounting in government
