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The manager of Ice Sculpting Co.

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The manager of Ice Sculpting Co. believes that too much material is being wasted during downtime. She researched, and found throughput accounting to be an adequate alternative. However, she wasn't sure if all that

she read was accurate.

Which of the following statements are TRUE when using Throughput Accounting? Select ALL that apply.

A.

If there is no demand, then there should be no production.

B.

Not all sales equal to profit

C.

Stocking up on inventory is bad for business.

D.

All costs, except materials, are considered fixed.

E.

Departments should be operating at full capacity regardless of bottlenecks

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