A lecturer from Collage of Administration and Economics /Kerbala University has published a scientific study for Opportunity Cost and Its Role in Responsibility Accounting/ Study in Al-Wissam Company for Dairy and Foodstuffs
Iraqi Journal of Administrative Sciences, Iraq, Volume 6 – Issue 22 – 2008
Dr. mohammed wafi Abd Eawn

Abstract:
The problem of this research comes up with the result that not considering the concept of opportunity cost as an important part of the costs and not mentioning it in the performance reports and depending only on the explicit costs will lead to veil an important part of the relevant costs, then the inability of the management, in different levels, to take any right decision and imposing awared control.
This research aims to presentation a theoretical and practical study regarding the application of responsibility accounting system based on opportunity cost. The research depends on the following hypothesis: – “Taking the concept of opportunity cost nd making it appear in the performance reports will ensure relevant information that will assist the management in its different levels to make the right
decisions and imposing awared control through relying on the multiple linear regression in order to define the variable cost for each product, and the use of linear programming to define the best available alternative opposite to the company”. The research is divided into paragraphs deals with the research methodology, previous studies, the opportunity cost, the explicit and implicit costs, relationship of the
opportunity cost with concepts the responsibility accounting and profit centers and control reports, the limitation of variable cost for each product following the multiple linear regression model, preparing the ideal production plan for the year 2007 to the sample company using the linear programming model, applying the responsibility accounting system which is based on opportunity cost, and the important conclusions that revealed by the study and giving the suggested recommendations.