Use of throughput accounting, based on the theory of constraints, as a tool for management accounting and, application in a manufacturing operaton

The product presentation with low prices and high quality as a requirement of the competitive medium has brought steps to take within the technological fields, and caused new administrative approachesto appearsince the traditional system couldn't be enough to meet the requirements. One of these new administrative approaches is increasing the quality while decreasing the costs and stocks. On the other hand, in order to make businesses use the high production technologies, new administration tools have been developed.One of these modern administrative tools is the Theory of Constraints and Throughput Accounting, as a reformist administrative accounting tool, by Dr. Goldratt. In this study, an exploratory and defining qualitative case study has been applied to measure the contribution of throughput accounting to the profitability of the businesses and use the results to evaluate in pricing and investment decision phases. The results show that there is a constraint in the company and the company operates non-efficiently, because of being unaware of this constraint. In addition, when the production costs are calculated with the both of two methods of the throughput accounting, the profit per product has increased, compared to the traditional methodology.