Throughput costing

Throughput costing is method of inventory costing in which only variable direct material costs are included as inventoriable costs. Also called super-variable costing.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Throughput costing. Method of inventory costing in which only variable direct material costs are included as inventoriable costs. Also called super-variable costing.