The Role of Throughput Accounting in Making Decision in Small Batch Production Environment

There are many challenges facing organizations. A complex and dynamic environment requires constant change and improvement of activities and reconfiguration of processes carried out in organizations. Market requirements and customer expectations force companies to seek for and apply ever new techniques and solutions. The aim of this article is to present the concept of Throughput Accounting in a production system operating under small batch production conditions as a support for decision-making. This paper also compares the results of using three different costing systems in a resource-constrained manufacturing environment. In contrast to traditional methods that focus on cost reduction, Throughput Accounting is a profit-focused method of achieving goals, based on maximizing throughput.