The role of RCA resource consumption accounting in reducing costs

Abstract

AbstractThe research aims to study the RCA technique of resource consumption accounting and to identify how to rationalize resources and exploit idle energy and not to load it on products, thus reducing costs. To achieve this, the researcher relied on the deductive approach in writing the theoretical framework of the research based on foreign sources as well as letters, university theses, researches, periodicals and articles related to the research topic, while the descriptive and analytical approach was relied on in writing the applied side of the research based on a set of means, including financial data, cost data, and personal interviews with managers, technical engineers and factory administrations, as well as the field experience of each of the General Administration of the General Company for Vegetable Oils and its factories (Al-Rasheed Factory, Al-Maamoun Factory, Al-Amin Factory, Al-Mu'tasim Factory) in applying the RCA approach to resource consumption accounting, and the products (oil Liquid, laurel soap, laundry powder (Sumer), clothes minor (Safa), liquid detergent (Zahi), toothpaste (Amber) in allocating costs, rationalizing resources, utilizing idle energy and reducing costs. The researcher reached a set of conclusions, the most important of which is that the use of RCA helped the General Company for Vegetable Oils to track primary and secondary costs accurately by separating fixed costs from proportional costs, thus facilitating the identification of idle energy and rationalization of resources. In light of these conclusions, a set of recommendations was reached, the most important of which is that the consumable materials produced by the State Company for Vegetable Oil Industry (such as (liquid oils, cleaning powders, soaps) are materials for today's need that are used continuously and it is not possible to continue importing them from abroad. They are produced nationally, especially in the current situation. We must encourage the national product and not continue importing these materials and thus help these exporting countries to benefit from the migration of currency abroad and at the time that we can and have the ability to produce them with high specifications and quality, especially since Iraq is one of the first countries in Produce these products.