Throughput costing income statements help managers determine the most efficient uses of resources in the short term.

Question

Quizplus · Accepted Answer

Throughput costing income statements focus on identifying constraints in the production process and finding ways to maximize the output of those constraints. By understanding which resources are limiting production, managers can allocate resources more efficiently and increase overall profitability in the short term.

Throughput Costing Income Statements Help Managers Determine the Most Efficient