Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Preparing the Income Statement According to Throughput Accounting and Its Impact on Performance Evaluation - An Applied Study at the Southern Refineries Company / Basra Refinery

Author(s): Dr. Imad A.S. Al Mashkoor, Bushra A. Habeeb

The goal of this study is to create an income statement using the Throughput accounting method and to determine the usefulness of this method in providing management with the essential information for performance evaluation. Throughput accounting is a cost accounting and management accounting technique that enables management to evaluate performance in light of contemporary production trends. Additionally, to determining the percentage of available energy that is being consumed. The South Refineries Company / Basra Refinery was subjected to the research as one of Iraq's industrial sector companies. The study followed a scientific methodology that incorporated both theory and practice. The study discovered a number of findings, the most significant of which is that the company did not make optimal use of available energy. This is due to a flaw in the implementation of plans and policies; because typical systems designed to operate efficiently result in a large amount of inventory, this has a negative effect on the business. It was concluded that throughput accounting is primarily concerned with sales as the sole source of (profit), as well as providing accurate and critical information about the most profitable product mix by rearranging products according to the completion rate for each minute the product consumes the limited resource during the manufacturing stages.

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