Ch 2 Flashcards
(4 cards)
1
Q
Theory of constraints
A
The less efficient elements within an organisation that limit workflow. Throughput accounting is based on the theory of constraints
2
Q
Constraint
A
An activity, resource or policy that limits the ability to achieve an objective
3
Q
Throughput
A
Essentially how fast revenue is being earned compared to how fast costs are being incurred
4
Q
Super variable costing
A
The only true variable cost that a company has is the material cost (throughput accounting)
