Institute media
The Department of Accounting Studies at the Post-graduate Institute for Accounting and Financial Studies at the University of Baghdad discussed the research titled (The Role of Integration Between Activity-Based Costing (ABC) and Activity-Based Management (ABM) Techniques in Cost Reduction to Achieve the Dimensions of Sustainable Development-Applied Research ) for the student Doaa Kadhim Omran to obtain Cost and Managerial Accounting certificate, which is the highest professional certificate in the field of specialization, and its holder enjoys all the rights and privileges of a doctorate degree.
This study aimed to demonstrate the role of integrating costing and activity-based management techniques in reducing costs, and to illustrate the impact of this integration on achieving the dimensions of sustainable development (economic, social, and environmental). This helps address the research problem of high product costs (per barrel of oil), as well as the company’s incurring significant expenses on non-production activities, which in turn significantly impact product costs.
The study concluded that the company neglects strategic cost management techniques, particularly regarding the identification, classification, and allocation of costs to activities. This leads to inaccurate and flawed cost allocation. Neither costing nor activity-based management techniques were implemented within the company. Although the use of activity-based costing contributes to identifying activities and redistributing costs to them more accurately and fairly for each production line.
