Accounting For Throughput And Its Role In Restructuring Costs And Allocating Them To Products

Abstract

The ability of companies to develop their cost systems represents their ability to keep pace with the technological development of the industrial environment, which requires the use of modern techniques and methods. the research aims to identify and use the most important modern developments in the manufacturing environment, represented in the accounting for throughput entrance, to show its impact on the cost system, and to evaluate the extent to which accounting for throughput provides the appropriate information and help it determine how to rationalize industrial costs and identify obstacles.

The research problem centered on the question: Does accounting for throughput provide the necessary information to rationalize the cost structure in the contemporary manufacturing environment?

       Based on the foregoing, the research hypothesis is that the integration of accounting for throughput will determine the costs that guide operational decisions and increase their quality.

This research has been applied in a private sector company in northern Iraq , it is the Rogano Company for Insulating Glass and aluminum, as the necessary data were extracted to build and test the suitability of the information generated in rationalizing a package of operational decisions that are repetitive in almost every industrial unit.