please make upto 25 cards on Throughput Accounting

Question 1

What is Throughput Accounting?

Answer 1

A management accounting method that focuses on the rate at which a company generates money through sales.

Question 2

True or False: Throughput Accounting emphasizes cost reduction over revenue generation.

Answer 2

False

Question 3

What is the primary goal of Throughput Accounting?

Answer 3

To maximize throughput while minimizing inventory and operating expenses.

Question 4

Fill in the blank: Throughput is defined as __________ minus totally variable costs.

Answer 4

sales revenue

Question 5

What are totally variable costs?

Answer 5

Costs that vary directly with the production volume, such as direct materials.

Question 6

Which metric is critical in Throughput Accounting for decision-making?

Answer 6

Throughput

Question 7

True or False: Inventory is considered an asset in Throughput Accounting.

Answer 7

False

Question 8

What is the formula for calculating throughput?

Answer 8

Throughput = Sales Revenue - Totally Variable Costs

Question 9

In Throughput Accounting, what is the role of operating expenses?

Answer 9

To be minimized in order to increase overall profitability.

Question 10

Multiple Choice: Which of the following is NOT a focus of Throughput Accounting?
A) Maximizing throughput
B) Minimizing inventory
C) Reducing labor costs
D) Managing operating expenses

Answer 10

C) Reducing labor costs

Question 11

What does the term ‘bottleneck’ refer to in Throughput Accounting?

Answer 11

A resource that limits the overall throughput of the system.

Question 12

Fill in the blank: The objective of Throughput Accounting is to identify and manage __________.

Answer 12

bottlenecks

Question 13

True or False: Throughput Accounting can be applied to both manufacturing and service industries.

Answer 13

True

Question 14

What is the relationship between throughput and profitability?

Answer 14

Higher throughput generally leads to higher profitability.

Question 15

Multiple Choice: Which of the following is a key principle of Throughput Accounting?
A) Focus on fixed costs
B) Maximize throughput
C) Increase inventory levels
D) Reduce sales prices

Answer 15

B) Maximize throughput

Question 16

What is the throughput contribution per unit?

Answer 16

The amount of throughput generated by each unit sold after accounting for totally variable costs.

Question 17

Fill in the blank: In Throughput Accounting, __________ decisions are made based on their impact on throughput.

Answer 17

operational

Question 18

True or False: Throughput Accounting ignores non-variable costs in decision-making.

Answer 18

True

Question 19

What is the significance of the ‘Throughput Accounting Ratio’?

Answer 19

It measures the efficiency of a business in generating throughput relative to its operating expenses.

Question 20

Multiple Choice: Which of the following best describes the focus of Throughput Accounting?
A) Cost control
B) Revenue enhancement
C) Profit maximization through throughput
D) Asset management

Answer 20

C) Profit maximization through throughput

Question 21

What is the effect of increasing throughput on inventory levels?

Answer 21

Increasing throughput typically reduces the need for high inventory levels.

Question 22

Fill in the blank: The Throughput Accounting approach is often associated with the Theory of __________.

Answer 22

Constraints

Question 23

True or False: Throughput Accounting provides a framework for understanding the financial implications of operational decisions.

Answer 23

True

Question 24

What is one limitation of Throughput Accounting?

Answer 24

It may oversimplify complex financial situations by focusing primarily on throughput.

Question 25

Multiple Choice: The focus of Throughput Accounting is primarily on which of the following? A) Reducing fixed costs B) Increasing sales volume C) Enhancing throughput D) All of the above

Answer 25

C) Enhancing throughput