The short-run TOC emphasis on maximising throughput contribution by managing bottlenecks complements the long-run strategic-cost-management focus of ABC.

Question

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True. Throughput accounting (TOC) focuses on identifying and managing bottlenecks in the short-run to maximise throughput contribution, while activity-based costing (ABC) focuses on long-run strategic cost management by identifying and allocating costs to activities and products. The two approaches are complementary as they both aim to improve profitability and efficiency, but at different levels of analysis and time horizons.

The Short-Run TOC Emphasis on Maximising Throughput Contribution by Managing