Title: Developing a Cost Information System Through an Integrated Framework of Techniques: Material Flow Cost Accounting (MFCA), Resource Cost Accounting (RCA), and Theory of Constraints (TOC).
Authors: Pro. Fathi R. Al-Sawafiri and Dr. Ahmed I. Alhussaina
Volume: 8
Issue: 12
Pages: 36-50
Publication Date: 2024/12/28
Abstract:
The study aimed to design a proposed integrative framework that brings together the three techniques: material flow cost accounting (MFCA), resource consumption accounting (RCA), and the theory of constraints (TOC). The study used the descriptive analytical approach, a field study to survey the opinions of a representative sample of users of cost information. A number of statistical methods were also used to analyze the results. The results showed the need to focus on analyzing and detailing the total costs of materials into the cost of basic materials, the cost of energy used, the cost of the applied system, and the cost of waste and emissions management, including inventory and treatment. The study also called for achieving fairness, accuracy, and timeliness in allocating indirect costs, and not burdening production costs with unused energy losses. In addition to a number of recommendations in this scope.