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What is throughput costing? What advantages does it have over variable and absorption costing?

Kei-Fukuda

wrote...

Posts: 321

Rep:

6 years ago

What is throughput costing? What advantages does it have over variable and absorption costing?

What is throughput costing? What advantages does it have over variable and absorption costing?

Textbook

Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis

Edition: 16^th

Authors: Horngren, Datar, Rajan

Read 78 times

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Fanmkreyol

wrote...

#1

6 years ago

Throughput costing is an inventory method which treats all costs except direct materials as costs of the period in which they are incurred. Throughput costing results in a lower amount of manufacturing cost put into inventory than either variable or absorption costing. Supporters of throughput costing claim that it provides less incentive to produce for inventory than absorption costing or even variable costing.

Kei-Fukuda Author

wrote...

#2

6 years ago

Exactly what I needed for my quiz Smiling Face with Open Mouth

Smiling Face with Open Mouth

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