Throughput Accounting

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August 31, 2024 3 min read Definitions

TAR: Abbreviation for Throughput Accounting Ratio

Economics Finance Throughput Accounting Efficiency Metrics Profitability Analysis Business Processes Key Performance Indicators

Throughput Accounting Ratio (TAR) is a key performance indicator used in throughput accounting, which helps in assessing the efficiency and profitability of business processes.

August 31, 2024 4 min read Definitions

Throughput Accounting: Optimizing Decision-Making in Manufacturing

Accounting Management Manufacturing Throughput Accounting Decision Making Management Accounting Manufacturing Constraints

Throughput Accounting is an approach to short-term decision making in manufacturing where all conversion costs are treated as fixed, and products are ranked based on a constraint or scarce resource. It uses the Throughput Accounting Ratio (TAR) for decision-making. Recently, it has been applied in more general management accounting areas.