Alex and Ethan Frost
B: Determine cost through Throughput, Inventory and Operational expenses
D: Use Johna's TOC methods
A: Produce accurate cost per product
Click on the icons on the arrows to see assumptions and injections
C: Determine cost through labor overhead and materials
D': Use traditional cost accounting methods
In order to Produce accurate cost per product I must Determine cost through Throughput, Inventory and Operational expenses and in order to Determine cost through Throughput, Inventory and Operational expenses I must Use Johna's TOC methods. But, in order to Produce accurate cost per product I must also Determine cost through labor overhead and materials and in order to Determine cost through labor overhead and materials I must Use traditional cost accounting methods. I can't both Use Johna's TOC methods and Use traditional cost accounting methods.
| Relation | Assumption(s) | Injection(s) |
| D-D' | I cannot use both methods | I could keep two seperate accounting books |
| B-D | These are the elements that determin TOC accounting methods | |
| C-D' | These are the elements that make up traditional cost accounting | They can can make it appear that costs are higher than they really are |
| A-B | These are the methods that we have been using for the past 2 months | We are just rearranging where costs are incurred |
| A-C | This is the way that it has always been done | This is not the way we have been tracking costs |