What is the difference between Throughput Accounting and Constraints Accounting?
TPACC do not make a significant distinction between Throughput Accounting and Constraints Accounting because TPACC conforms to both the descriptions. Throughput Accounting is the original name of the subject and Constraints Accounting is a later addition. TPACC has been applying Constraints Accounting since is originally started using Throughput Accounting and the founder of TPACC was the first to coin the term Constraint Based Accounting (CBA – 1996) which is akin to Constraints Accounting. Some reputable authors explain that Constraints Accounting is better understood as an accounting term, whilst Throughput Accounting is better known in production circles, whilst making the distinction that Constraints Accounting is a reporting method whilst Throughput Accounting is a direct costing method. These arguments are irrelevant to TPACC because we regard them as one and mainly use the term Throughput Accounting to describe the subject.
