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Throughput Accounting Ratio Explained by Talla Mokshitha is a document available to read on EtoBox.
Throughput accounting focuses on the rate at which a company converts goods and services into sales and profits, known as throughput. It presents an alternative to conventional accounting by considering sales revenue and total variable costs to calculate throughput. Ratios like return per factory hour, cost per factory hour, and throughput accounting ratio are used to determine if a product is profitable by comparing its throughput profit to fixed costs. If the throughput accounting ratio is above 1, it is
- Author
- Talla Mokshitha
- Language
- EN