Evaluating the Company’s Financial Performance based on the Integration between the Time-Driven Activity-Based Costing (TDABC) and Responsibility Accounting Systems

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Evaluating the Company’s Financial Performance based on the Integration between the Time-Driven Activity-Based Costing (TDABC) and Responsibility Accounting Systems

Abstract

The issues of traditional systems appear, including the problems of allocating indirect costs based on volume and the weakness of systems based on central management, which imposes integrating cost and administrative systems to allocate indirect costs appropriately, making the financial performance evaluation better with this allocation. The main objective of the research is to apply the TDABC & RA systems. To achieve the research objective, the researcher utilized the inductive research method by extrapolating data from one of the companies operating in the industrial sector. Among the research tools used is the implementation of the steps to apply the two systems. The research concluded with a set of conclusions, the most prominent of which is that the theoretical and practical framework for integration between the TDABC & RA systems has an essential role in evaluating the financial performance of the cement plant in a better way. As for the most critical research recommendations, integrating cost and administrative systems contributes to addressing the weakness of evaluating and measuring financial performance in the cement plant.

Muthanna Journal of Administrative and Economic Sciences, 2024,Volume 14, Issue 4, Pages 33-44

DOI:10.52113/6/2024-14-4/33-44

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