Specificity of application of throughput accounting in JIT business environment

Abstract

JIT business system appears as one of the features of the modern dynamic business environment. JIT's production philosophy looks at a complete scheme of business processes, from the procurement of raw materials, through its transformation into components to the finished product that the company places on the market. In doing so, great attention is paid to the control of performance measures such as: time, cost, inventory and quality. Successful management of the company in such conditions requires the collection, measurement, classification, processing and distribution of a mass of diverse information that will be relevant and provide better insight into the strategic and competitive position in the market. In JIT companies, an integrated approach to the use of financial and non-financial information for decision-making is necessary. Changes in the areas of production, management and organization have caused appropriate adjustments in costing systems, in order to effectively and efficiently use all production factors. Consequently, an integrated approach to management accounting, the Throughput Accounting concept, based on the basic principles of Constraint Theory, was adopted. Throughput accounting capabilities in terms of providing information are closely related to short-term decision making and enterprise performance management. In doing so, decisions are made on the basis of throughput per unit of limiting factor. The concept of the paper conceived in this way should contribute to the achievement of the goal related to the research of the impact of the modern business environment on the management of the company and the accounting system, and especially on management accounting.