Throughput means amount of material passes through process of manufacturing! So, in throughput accounting, focus is only on material which is passed through manufacturing process and only material cost is considered as variable cost. It is just different approach focusing on material cost. If we consider all variable cost, traditionally we learn, i.e. material, labour, overheads etc., then it become marginal costing. So, throughput accounting is focusing only on Material cost. Hope your doubt is clarified! Feel free to reach out for more clarifications! Thanks.
Sir Environmental management account ke concept ko acche se without example samjha dijiye jisse hum expenditure ko Hansen mendoz ke category me samjh sake
Thank you Sir
Sir chapter 5 video upload kijiye na
next video sir ??
Why Througput = Sales - variable cost i.e. material only ?
Throughput means amount of material passes through process of manufacturing!
So, in throughput accounting, focus is only on material which is passed through manufacturing process and only material cost is considered as variable cost. It is just different approach focusing on material cost.
If we consider all variable cost, traditionally we learn, i.e. material, labour, overheads etc., then it become marginal costing. So, throughput accounting is focusing only on Material cost.
Hope your doubt is clarified!
Feel free to reach out for more clarifications!
Thanks.
Sir Environmental management account ke concept ko acche se without example samjha dijiye jisse hum expenditure ko Hansen mendoz ke category me samjh sake
I'll try to upload the video soon!
When do you have your test?