An applied study in the men’s clothing factory in Najaf

qaysar eali eubayd alfatli
Kufa University – Accounting Department



  The changes that are taking place in the modern business environment, which are highlighted by technological progress, globalization and change in customer tastes; have affected the value of the products offered by the economic units to their customers.Therefore, if these entities want to follow these changes to improve product value, they will require the application of new approaches and techniques in the field of cost and management accounting, which are highlighted by the target cost, continuous improvement, value engineering, value stream mapping, time-driven activity based costing and balanced scorecard.

Value stream mapping and time-driven activity based costing are among the proven technologies in a competitive business environment in terms of their role in improving the value of the product. Value stream mapping technology is based on tracking the progress of all product-related processes from research and development to the after-sales service.This technique can identify activities that add value to the product from those activities that do not add value to it, as well as determine the time required for each process and compare it with the time of the product cycle. While time-driven activity based costing (TDABC) is based on the determination of utilized capacity and unutilized capacity, thus determining the cost of the product more appropriately.

The study aims at explaining the role of integration between the techniques of value stream mapping and time-driven activity based costing in improving the value of the products of Men’s Garment Factory in Najaf. The study concluded that the main reasons for the high costs in the Men’s Garment Factory are not to rely on modern cost and management accounting techniques, such as the technique of value stream mapping and time-driven activity based costing.

In the light of the conclusions, a number of recommendations were proposed, which included the management of the factory should use modern techniques in cost and managerial accounting such as the value stream mapping and time-driven activity based costing (TDABC) due to the challenges of the contemporary environment that made customers’ desires and aspirations the maingoal of competition and cost reduction.

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