Throughput costing was developed in the 1980s as part of:
A)The theory of constraints
B)Zero-based budgeting
C)Activity-based costing
D)Variable costing income statements

Question

Quizplus · Accepted Answer

Throughput costing is a component of the theory of constraints, which is a management philosophy developed by Dr. Eliyahu Goldratt in the 1980s. It focuses on identifying the key constraints or bottlenecks that limit a company's ability to achieve its goals, and then managing those constraints to improve overall performance. Throughput costing is a technique used to evaluate the impact of changes in production and sales volumes on a company's profitability under conditions of limited capacity.

Throughput Costing Was Developed in the 1980s as Part Of