by Susan Omer Othman Nanakali1* and Parzheen Sh. Mohamad Aziz
ABSTRACT
The research purpose is to focus on the role of resource consumption accounting (RCA) in improving financial performance. Also, its impact on cost reduction and transformative impact in setting and maintaining competitive prices within the modern dynamic and competitive business environment. Modern organizations have continuously been looking for new tools that would increase their operational efficiency, and in this
context, resource consumption accounting (RCA) has come up as a strategic management tool kit posing a challenge to the traditional cost accounting methodologies that focused with more emphasis on the judicious use of resources. Methodology: This study would be empirically applied to the Mass Iron and Steel Industry company in Sulaymaniyah, Kurdistan region, Iraq. Finding: The result would support the hypothesis; this study was intended to estimate the positive influence of resource consumption accounting (RCA) on cost reduction and its transformative implications concerning an organization’s ability to set and maintain competitive pricing and would result in improving financial performance. Originality: originality of the research indicated by introducing new ideas, theories, methods, or applications that have not been explored by previous studies.
