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- Title
Applying Strategic Cost Analysis Concepts to Capacity Decisions.
- Authors
Juras, Paul; Peacock, Eileen
- Abstract
The product with the highest unit profit may not be the product with the highest profit per unit of resource consumed. The Theory of Constraints (TOC), with its emphasis on throughput costing, offers one possible approach to profitability analysis, but it is focused on the short term. The authors discuss why throughput costing, in combination with ABC, is a better option to guide long-term, strategic decision making.
- Subjects
COST analysis; PROFITABILITY; THEORY of constraints; PRODUCT costing; ACTIVITY-based costing; COST accounting; DECISION making
- Publication
Management Accounting Quarterly, 2006, Vol 8, Issue 1, p24
- ISSN
1528-5359
- Publication type
Article