IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-35327-5_12.html
   My bibliography  Save this book chapter

Throughput Accounting

In: Review of Management Accounting Research

Author

Listed:
  • Tony Tollington
  • Venkateswara Pilla

Abstract

An emphasis on product costing is misplaced if the product in question is of poor quality, is delivered to the marketplace too late (speed of response) or lacks innovation in a rapidly changing market place. What possible use is there in knowing an accurate product cost if the product fails on any of the other three grounds outlined above? This question effectively places the relevance of product ‘cost accounting’ in a much broader ‘management accounting’ context that addresses product costing, accounting for quality, accounting for throughput and accounting for intellectual capital. In this short chapter, we concentrate on accounting for throughput (Dugdale and Jones 1996a), that is, the speed of response of a business entity to the market place and mostly from a manufacturing perspective. In this process, we start with the discussion of the method as proposed by Goldratt and Cox (1984), including the Theory of Constraints (TOC), and the later development by Galloway and Waldron (1988a, 1988b, 1989a, 1989b), including the Throughput Accounting ratio (TA ratio). Thereafter, we discuss how the management of production bottlenecks is carried out with the help of an illustrative case. In addition, a literature review is carried out, specifically, its evolution from the 1980s, with the aim of encouraging further academic research in this area.

Suggested Citation

  • Tony Tollington & Venkateswara Pilla, 2011. "Throughput Accounting," Palgrave Macmillan Books, in: Magdy G. Abdel-Kader (ed.), Review of Management Accounting Research, chapter 12, pages 295-310, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-35327-5_12
    DOI: 10.1057/9780230353275_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-35327-5_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.