Title:
THE IMPACT OF TIME-DRIVEN ACTIVITY-BASED COSTINGS ON PRODUCT COST RATIONALIZATION AND PRICING ACCURACY: AN EMPIRICAL STUDY OF IRAQI INDUSTRIAL FIRMS

Authors:
Ali Jamal Tuama Alzamili, Iraq

Abstract:
Purpose: Using several case studies in Iraqi industrial companies, this study empirically investigates the effects of Time-Driven Activity-Based Costing (TDABC) applications on product cost rationalization and pricing accuracy. Methodology: The impact of Time-Driven Activity-Based Costing (TDABC) on pricing accuracy and product cost rationalization in four Iraqi industrial companies is empirically investigated in this study using a multi-case study design. an examination of 156 company documents—including production records cost reports financial statements and capacity utilization data—were among the various techniques used to gather the data. while within-case findings are analyzed using descriptive statistics and paired comparisons. Results: TDABC implementation significantly improves cost accuracy in all cases according to the empirical data. In the textile factory TDABC found idle capacity worth 712 million Iraqi dinars which resulted in a 23.1 % decrease in recorded product costs from 3. 077 billion to 2. 365 billion dinars. Customer segments that were once thought to be profitable under traditional costing were actually unprofitable according to TDABC at Al Narjis Construction Company. The Kufa Cement Factory case demonstrated how using traditional volume-based allocation (number of workers) distorted cost information whereas TDABC allowed for optimal resource utilization and a cost reduction of over 18%. The TDABC implementation helped the battery manufacturer reduce idle production capacity by 26%. Practical implications: By implementing TDABC Iraqi industrial companies can significantly reduce costs and improve pricing. The framework makes it possible to identify resources that are idle analyze customer profitability more precisely and make evidence-based pricing decisions that take into account real resource consumption trends. Originality/value: This research offers the first thorough multi-sector empirical evidence of the impact of TDABC in the Iraqi industrial context. It presents quantitative results that show the extent of cost distortions in conventional costing systems and the possibility of improvement through time-driven approaches.