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Throughput Accounting

The Theory of Constraints for Finance and Measures is often a necessary, but not sufficient logistical application that must be introduced with nearly all of the other logistical solutions (i.e. Distribution, Operations, Project Management). An organization utilizes finance and measures to evaluate the performance of the entire system. There are three global operational measures – Throughput, Investment, and Operating Expense utilized to support decision-making. All decisions must be presented in a way that clearly identifies the impact to each of these measures.

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