Numerous innovative cost control practices have been evolved during the last two decades. The entire gamut of cost accounting system has been broadened to equip and assist managers to cater to the needs of the customers and manage the firm's business processes that are used to create customer value for lesser cost than its competitors, thereby enhancing the competitiveness and profitability of the firm. TOC is one such innovative cost control tool which is based on the fundamental assumption that every organization has at least one element or factor which impedes or obstructs its overall profitability. The basic focus of TOC is that an organization can maximize its profits by correcting and efficiently utilizing the weak links. This article delves into all the relevant aspects of TOC.

The last two decades have witnessed the genesis of various innovative cost management practices. The focus and thrust of these cost accounting systems have been broadened to enable managers to better serve the needs of the customers and manage the firm's business processes that are used to create customer value. These innovative cost management tools help a firm to establish a competitive advantage by providing more customer value for less cost than its competitors. The three strategic areas that give the firm the extra competitive advantage over its rivals are: Time-based Performance, Quality Management and Cost Control.

Free market economic policies and improvement in transportation and communication systems have led to a global market for manufacturing and service firms. This new competitive environment has increased the demand not only for more cost information but also for more accurate cost information.

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