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<span>Throughput accounting enables observing the constraints in the system according to the theory of constraints philosophy to increase the profitability level of the enterprise and the financial impact of the improvements made to increase the profitability level. Therefore, managers focus on improving the limitations of indirect material costs, which are variable depending on the production volume, and focus on productivity as other expenses are considered to be constant. Reducing the use of inputs, especially in production enterprises, would not only increase operating efficiency but also focus on production processes and bring quality. The aim of the study is to solve the product mix problem by using the throughput accounting method, which is a way to achieve efficiency, quality, and a certain stage in production. In this context, a sample production enterprise operating in the agricultural machinery sector is examined. In an enterprise producing agricultural machinery, two separate income statements are prepared according to the share of the yield based on the theory of constraints and the yield per machine hour. As a result of the comparison, it is determined that the highest operating profit is the efficiency per machine hour. As the result of the study, it is recommended to use throughput accounting in production enterprises in order to ensure efficiency, to realize production and cost planning and control.<br></span><span>Keywords: </span><span>Throughput Accounting, Theory of Constrains, Production Enterprise, Yield.</span> <br></br></br>
Detailed Information
| Author: | Ulukan Buyukarikan |
|---|---|
| Publication Year: | 2021 |
| Pages: | 13 |
| Language: | other |
| File Size: | 0.9669 |
| Format: | |
| Price: | FREE |
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