Cost Reduction using Time- Driven Resource Consumption Accounting A case study in the leather factory / Advanced Civil Footwear Factory No. (7)

Abstract : Most products produced by profit-oriented industrial units operating in the Iraqi environment face intense competition from imported products due to several problems. These include a lack of market research, high production costs, insufficient government support for the industrial sector, the flooding of local markets with imported products at competitive prices, and the reliance of these units on traditional costing systems that fail to provide adequate information for pricing decisions. Therefore, it is necessary to analyze these problems and address them using a modern strategic cost management technique: Time- Driven Resource Consumption Accounting (TD-RCA), This research aims to study and analyze the role of TD-RCA in Cost Reduction, To achieve this objective, TD-RCA was applied to a product of the Advanced Civil Footwear Factory No. (7) based on field observation and data analysis for the year 2024, The research concluded that applying TD-RCA to determine production costs at the Advanced Civil Footwear Factory No. (7) in 2024 resulted in a reduction of production costs from (390,856,988) Iraqi dinars, calculated according to the traditional costing system. The current cost applied in the factory is (287310178) dinars, calculated after applying the ((TD-RCA) technology, i.e., a reduction in costs of (103546810) dinars, which is represented by the costs of idle energy, which should not be charged to the product costs, meaning that the application of this technology contributed to reducing costs.