A research team from the College of Administration and Economics – University of Karbala, under the supervision and guidance of Prof. Dr. Salah Mahdi Jawad Al-Kawaz, Asst. Prof. Dr. Hussam Mohammed Ali Al-Aweed, Dr. Ahmed Nasser Al-Daami, and Prof. Dr. Ali Abdulhassan Abbas Hassan, published a research paper in a Q1 Scopus-indexed journal with an impact factor of 6.3, and listed in Clarivate’s Q3 with an impact factor of 1.6, titled:
“Product Cost Rationalization Using Time-Driven Activity-Based Costing and Disaggregation Analysis” in the journal Archives of Production Engineering (Poland).
The Archives of Production Engineering (PEA) is a scientific journal published quarterly by the Publishing Office of the Association of Quality and Production Managers, affiliated with the Department of Production Engineering and Safety, Czestochowa University of Technology, Poland. The journal is published by Sciendo (European Publisher) and is listed among the scientific journals recognized by the Polish Ministry of Science and Higher Education.
Abstract:
In Iraq’s competitive business environment, economic units—particularly in the textile sector—face significant challenges in cost reduction and efficiency enhancement. This study presents an innovative approach combining Time-Driven Resource Consumption Accounting (TD-RCA) and Tear-down Analysis to achieve effective product cost allocation, with a practical application in a men’s ready-made clothing factory in Najaf.
The study results indicate that implementing TD-RCA helped identify idle and underutilized capacity in production processes, valued at 712 million Iraqi dinars, highlighting significant resource waste and the inefficiency of traditional accounting systems. By allocating costs based on the actual time of activities, the recorded product cost decreased from 3.077 billion dinars to 2.365 billion dinars, demonstrating the technique’s ability to improve transparency and accuracy in cost accounting.
Meanwhile, the tear-down analysis comparing local products to competitive Turkish products revealed significant differences in raw materials and design. For instance, the Iraqi product used heavier and more expensive materials, while the Turkish product employed lighter materials and more flexible design that aligns with customer preferences. Simulating the specifications of the competing product identified a potential saving of 29,672 dinars per men’s suit, while maintaining quality.
The study confirms that integrating these two techniques not only provides precise cost and time data but also opens opportunities for process reengineering and adopting Industry 4.0 technologies such as AI and automation to sustainably enhance productivity and reduce costs.
