The objective of this paper is to analyse the methods of activity-based costing and the throughput accounting of the theory of constraints, with respect to the management decision criteria utilized by them. A analyse is performed to know the impact on profits producing the product mix recommended by each method. It was realized, by means of a case study, that a metalwork firm gets a big increase in its profitability, once it starts using throughput accounting to sustain its decisions. It is shown that the production mix chosen by the ABC costing, for the calculation of the product cost, implies a loss, whereas the mix suggested by the throughput accounting, which calculates product's unit throughput per use of the time in the constraints, provides a mix that maximize firm's profit.
Cost Accounting; Activity-Based Costing; Throughput Accounting
