Product Description
Learn How To Apply The Theory Of Constraints To Management Accounting. The Theory of Constraints, a management philosophy derived from physics, assumes that constraints prevent organizations from achieving better performance. The Theory of Constraints (TOC) is based on a scientific method that has been developed and refined for nearly three decades by Dr. Eliyahu M. Goldratt. As a tool for business management, TOC is now accepted as a mainstream alternative to cost accounting.
Throughput Accounting
Reveals a new management tool for managerial accounting and shows an alternative path for other management practices.
Enables managers to quickly see if their decisions increase profitability.
Demonstrates some of cost accounting's flaws, and shows how these errors will lead to bad decision making.
Compares the paradigm of TOC-based throughput accounting with more conventional cost accounting methodologies and in the process, demonstrates a new way to solve the complex problems of modern management.
Average Customer Review:
0 of 0 people found the following review helpful:
Clear and simple, The best way to understand., 2007-12-21
It does not matter what level of TOC you are, the way this book is made, will make you be at the front door of the best way to take good decisions.
9 of 9 people found the following review helpful:
Good if you're familiar with TOC, 2004-02-24
This is a good explaination of why the various allocation based account methods lead to poor management decisions and a good introduction to a better way of accounting. It does not include how to reconcile throughput accounting with required GAAP reporting. The only book I know that does is The Measurement Nightmare, which is a rather difficult read. It would be very helpful to have a book with example problems to work, an explaination of the GAAP reconciliation process, and more detail into what costs are totally variable and non-totally variable.
3 of 7 people found the following review helpful:
Stop waisting time and start making money!, 2003-07-31
This is a funny little book. It's not too well written and the content is not that new, once you have read Eli Goldratt's basics on the topic.
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?
2 of 10 people found the following review helpful:
Helpful book, 2003-02-19
People who did not understand the message, find the Throughput Accounting a useless framework. But if you are a smart and open mind person, this book is for you. The theory is very well explained illustrating an alternative path to the old and nosense cost accounting.
I advice you to buy it.
1 of 34 people found the following review helpful:
Useless book, 2003-01-19
I really think I have lost money buying this useless book I advice you not to buy it.
The nosense theory explained is even explained bad.