The Role of Resource Consumption Accounting in Enhancing Cost Management - An Applied Study in the Alexandria Body Factory

Abstract

The research aims to demonstrate resource consumption accounting and its role in enhancing cost management and its application in one of the Iraqi industrial economic units, the Body Factory. This is achieved by utilizing resource consumption accounting as one of the most important strategic cost management techniques, which provides more accurate and appropriate information about resources and detects idle capacity. The researcher reached a set of conclusions, the most important of which are:

Measuring resource consumption accounting leads to achieving the goal of the economic unit and thus achieving the purpose of cost management by focusing on the activity requirements of the unit's resources. The economic unit upon which products depend, with the aim of managing costs and achieving customer satisfaction and cost savings through reducing energy consumption. In light of these conclusions, a set of recommendations were made, the most important of which are:

Work to measure costs according to resource consumption accounting with the aim of providing information aimed at rationalizing resource management and planning to preserve resources and optimize their use. It is also necessary to establish a database that provides information at the operational and strategic levels to enhance cost management.