Application of resource consumption accounting to improve Cost management

Abstract

This research aims to explain the role of resource consumption accounting for cost management to achieve the goals of the economic unit in achieving optimal exploitation of available resources and reducing cost by isolating and excluding unused energy, and providing appropriate information for making administrative decisions and in order to advance the industrial reality of economic units, enabling them to compete with other products as well as maintaining market share and gaining customer satisfaction. In addition, it is unable to apply the approved cost systems for those units and keep up with the developments taking place in the modern manufacturing environment. This is what led them to provide inaccurate information. In order to achieve the research objectives and test its hypotheses, the Wasit Textile and Knitting Factory - Sock Knitting Department was chosen as a place for research. When applying this technique, the researcher relied on the data obtained through field investigation. And personal interviews with supervisors and workers in the factory under study, as well as information about the cost system adopted in the factory, thus a set of conclusions were reached, the most important of which are: RCA technique are among the best modern technologies that seek to provide quaility and efficient products By excluding activities that do not add value to the product, thus leading to reducing the cost of the product, as well as identifying and measuring costs more appropriately and achieving cost savings by controlling formation costs, and the possibility of the role of resource consumption accounting in the factory under study to  address the high costs of the product.