This paper reviews differences between the traditional investment evaluation methods and real option approaches. This study considers management flexibility, contingency and volatility from a strategic management perspective. The roles of various real option approaches are discussed.

The four types of management accounting systems(traditional full costing, direct costing, activity-based costing, throughput accounting) are compared in this study. This paper reviews the differences between throughput and contribution margin. The paper concludes that the definition of totally variable cost(TVC) to calculate throughput is situational specific.