ABSTRACT

The basic theory in throughput accounting and Drum-Buffer-Rope (DBR)scheduling mirrors the direct costing and incremental or relevant costing taught in any beginning management accounting course. The philosophy of exploiting the drum is the part of the practice surrounding the same principle expressed in every management accounting text regarding profit maximization. The following excerpt is taken from one of the most popular management accounting texts in use in universities today (Introduction to Management Accounting, 9th ed., by Horngren et al., Prentice Hall, New York, 1993). It is common core curriculum for management accounting and is covered in similar verbiage in all introductory texts.