In throughput costing the throughput of a product refers to its:
A) selling price minus its fixed and variable costs
B) selling price minus its total fixed costs
C) selling price minus its totally variable costs
D) variable costs

Question

Quizplus · Accepted Answer

Throughput costing focuses solely on the variable costs associated with producing a product. Therefore, the throughput of a product is equal to its selling price minus its totally variable costs.

In Throughput Costing the Throughput of a Product Refers to Its