Which of the following statements about throughput accounting is false?
A) Throughput accounting is criticised for having a short-term focus.
B) Under throughput accounting, operating expenses are not relevant.
C) Throughput accounting measures the financial effects of bottlenecks.
D) Under throughput accounting, inventory is considered undesirable..

Question

Quizplus · Accepted Answer

Throughput accounting considers operating expenses relevant because they are a key factor in calculating throughput contribution, which is sales minus totally variable costs. Operating expenses are necessary to understand how efficiently a company is converting inventory into throughput.

Which of the Following Statements About Throughput Accounting Is False