Faculty Publications

Economic Theory, Cost Accounting And Theory Of Constraints: An Examination Of Relationships And Problems

Document Type

Article

Journal/Book/Conference Title

International Journal of Production Research

Volume

32

Issue

2

First Page

299

Last Page

308

Abstract

The theory of constraints (TOC) is a production planning and control system reported to improve manufacturing performance surpassing both materials-requirement planning and just-in-time systems. One requirement of TOC is the assumption of a cost-accounting system that is very different from traditional cost accounting. This study examines the conflict between traditional cost accounting and TOC accounting, presents a description of how the TOC method operates at The Trane Company (Macon, GA) and how the cost accounting aspect of TOC was used to evaluate the addition of a new product line proposed by marketing. © 1994 Taylor & Francis Group, LLC.

Department

Department of Management

Original Publication Date

1-1-1994

DOI of published version

10.1080/00207549408956934

Link to Full Text

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