The Theory of Constraints versus Activity Based Costing

Abstract: 5 pages. Compares and contrasts these two theories, their similarities and differences. Much has been written and discussed concerning the comparison of the theory of constraints versus activity based costing. However, the main thing to remember is that the theory of constraints should not be viewed as competing against the activity based costing but should instead be accepted as a complement to the technique. While the theory of constraints is concerned with optimizing throughput, that is, short-term profits, activity based costing is generally concerned with finding the right product mix that will lead to the greatest long-term profits. Bibliography lists 4 sources.

Filename: JGAthcon.wps

Pages: 5

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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