Which of the Following Statements About Throughput Accounting Is False

question 29

Multiple Choice

Which of the following statements about throughput accounting is false?

• A) Throughput accounting is criticised for having a short-term focus.
• B) Under throughput accounting, operating expenses are not relevant.
• C) Throughput accounting measures the financial effects of bottlenecks.
• D) Under throughput accounting, inventory is considered undesirable..

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Definitions:

Dividend Payments

Cash payments made by a company to its shareholders as a distribution of profits.

Variance

A statistical measurement of the dispersion of a set of data points, reflecting how much each number in the set differs from the mean.

Governor Cut-out

Governor cut-out is a mechanism in compressors or engines designed to disengage or reduce fuel supply once a predetermined speed or pressure is reached, to prevent over-speeding.

Governor Cut-in

The point at which a governor device starts to regulate or limit the speed, pressure, or other operational parameters to prevent system overloads.