Throughput Accounting Paperback – December 1, 1998
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Frequently bought together
- Item Weight : 9.1 ounces
- Paperback : 174 pages
- ISBN-10 : 9780884271581
- ISBN-13 : 978-0884271581
- Product Dimensions : 5.9 x 0.42 x 8.85 inches
- Publisher : North River Press (December 1, 1998)
- Language: : English
- ASIN : 0884271587
- Customer Reviews:
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Prior to reading this book, a number of people challenged my view on cost based accounting; now I understand enough to speak with confidence.
By itself, "Throughput Accounting" is excellent material and will help plant managers make informed decisions without the need for extensive cost accounting data. Together with the knowledge gained through other books on T.O.C., this book can help any organization reach unprecedented levels of improvement.
Moreover I had listed my questions before reading. This book has almost covered all my questions !! It brought some other questions as well. I have tried to reach the author with the contact details given in the book but unfortunately I could not reach him. I have tried internet search, North river press,.. and failed again. Fortunately TOCICO helped me to find the author and he was very kind to answer all my questions.
I like the book, slim and brief style, nice examples, pin points, practical. I believe this book is a good starting point for non-financial managers to understand accountants reality and provides a very good opportunity to discuss with them for mutual understanding. I admit at least this was our case in our company and now we are trying to transform usual periodical reporting to TA style.
In this book, Corbett does a great job illustrating how our old cost accounting techniques are inadequate, and, more importantly, can lead us to make decisions which actually harm the bottom line. But he doesn't stop at simply pointing out the shortcomings of cost accounting, as most texts do. He takes the additional step of providing real financial statements and measures that support the concepts in TOC, and allow accountants to give production management the data they need. You can begin using these statements right away in your own company. In addition, he shows us how to use TOC to make various financial decisions. He even spends a chapter showing some of the criticisms of Throughput Accounting and provide warnings about its proper use.
After reading this book you will realize that calculating a product cost is like buying a house and then trying to figure out how much of the purchase price to assign to the bathroom faucet. "Product Cost" is a fallacy, and impossible to determine. All that really matters is Throughput, the difference between selling price and totally variable costs.
If you are a controller or cost accountant stuck between production managers who are eager to implement TOC improvements, and financial managers who still insist on overhead application and product costs, this is the book for you.
However, Thomas Corbett simply put the stuff together and proves, beyond any doubt, the fallacy of classical cost accounting as well as the "new & improved" fallacy of ABC.
Examples are quite simple to follow and the outcome is very exiting!
Makes you seriously wonder if there is add-on software out there that extracts the relevant data from present accounting systems, and helps top and middle management make the right decdions for a change on a daily basis. Key question is; how can this software help non-TOC companies help establish their bottle neck?