Throughput accounting uses which of the following measures of the effects of bottlenecks?
i. Financial measures of inventory
ii. Financial measures of throughput
iii. Non-financial measures of throughput
iv. Operating expenses
A) i, ii and iii
B) ii, iii and iv
C) i, iii and iv
D) i, ii and iv

Question

Quizplus · Accepted Answer

Throughput accounting focuses on three primary measures: throughput (the rate at which the system generates money through sales), inventory (investment in things that the system intends to sell), and operating expenses (money spent to turn inventory into throughput). Thus, it uses financial measures of inventory (i), financial measures of throughput (ii), and operating expenses (iv). Non-financial measures of throughput (iii) are not a primary focus of throughput accounting.

Throughput Accounting Uses Which of the Following Measures of the Effects