Technical costing based on specification (ABCII) and its role in reducing costs: An applied study in the Leather Factory/ Advanced Civilian Shoes Factory

Given the inadequacy of the traditional cost systems applied in the economic entities, which do not take into account the non-financial variables, which are the essential core for pushing the economic entity towards success and leadership to keep pace with developments in the field of technology and the modern industrial and administrative business environment and in line with the constantly renewed requirements of customers due to flooding the market with various goods and services. Therefore, the research aimed to study and analyze the role of costing technology based on specifications (ABCII). In order to reduce production costs, the costing technology was applied to one of the products of Factory No. (7). One of the factories, the Leather Factory of the General Company for Textile and Leather Industries, is based on field experience, conducting personal interviews, and analyzing data. The research reached several conclusions. The most important of which is that the application of (ABCII) technology in the research sample (leather factory / advanced civil shoes factory No. 7) contributed to reducing costs by the amount and capacity of (17251108). Moreover, it was only seventeen million two hundred and fifty-one thousand one hundred and eight Iraqi dinars for sales (1484 pairs) in 2018. Furthermore, it is dispensing with activities that do not add value, considering maintaining the required level of product quality and maximizing customer benefit.