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Conventional cost accounting
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Throughput
accounting
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Inventory is an asset.
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Inventory is not an asset. It is a
result of unsynchronized manufacturing and is a barrier to making profit.
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Costs can be classified either as direct or indirect.
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Such classifications are no longer useful.
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Product profitability can be determined by deducting a
product cost from selling price.
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Profitability is determined by the
rate at which money is earned.
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Profit can be increased by reducing cost elements.
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Profit is a function of material
cost, total factory cost and throughput.
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