Vol. 22 No. 4 (2022)
The role of the Activity Based Budget Time Driven to apply Throughput Accounting (An Applied Research In Wasit Textile And Knitting Factory)
Sura Waleed Ismael Elias , Prof. Dr.Thair Sabri Mahmoud Al- Ghabban
The research aims to apply the method of Throughput Accounting with the contribution of the Activity Based Budget Time Driven (TD-ABB) for the woven fabric department (polyester blended – polyester 150/1) in the Wasit Textile and Knitting Factory. The problem of the research is that the research sample laboratory does not apply modern cost management methods represented in the the Activity Based Budget Time Driven (TDABB), as the Iraqi economic units suffer from their inability to compete in the labor market in light of the competitive environment, and the research was based on a basic hypothesis that The application of the budgeting method the Activity Based Budget Time Driven (TDABB) has a role in applying the method of throughput accounting for the product of polyester and polyester blend fabrics 150/1. Through the research, a set of conclusions was reached, the most important of which is: The application of the Activity Based Budget Time Driven (TDABB) based on time as a basic guide in distributing the cost of resources to the objectives of cost management, and then the outputs of this method of information are characterized by their accuracy and be more detailed, as the most dependent on this method is time, as time is one of the main success factors of the unit Economic and based on the times specified in the preparation of the budget highlights its role in applying the method of throughput accounting by calculating the completion time for each product. Reaching a set of recommendations, the most important of which are: Applying the method of throughput accounting by considering the variable costs only the cost of raw materials and thus achieving a high of achievement for a textile and weaving factory Wasit. As for the rest of the cost elements of direct wages and indirect costs, they are considered operating expenses.