chapter  8
Simplified Time-Based Accounting
ByJoyce I. Warnacut
Pages 20

A simplified time-based accounting system (STBA) combines the best of value stream (Lean) accounting and throughput accounting (TA). One central fact these approaches agree on is that product cost with full absorption of overhead (no matter how allocated) distorts true contribution, which can result in faulty profitability analysis, lead to incorrect pricing and make/buy decisions, and often motivates nonproductive behavior.