A simulation‐based comparison of TOC and traditional accounting performance measures in a process industry Available to Purchase

Aims to compare performance measurement of a continuous process manufacturing operation under two accounting systems – a traditional cost accounting system and the theory of constraints (TOC) system.

Using a computer‐based simulation methodology to capture operational performance, it is found that the TOC‐based accounting system presents a more realistic state of performance scenario.

Findings from this research indicate that businesses using a TOC‐based system can improve their performance more accurately, and hence gain a sustainable competitive position in the future.

This research is limited to continuous process manufacturing operations.

The research makes a significant contribution to the knowledge of performance measurement.