The role of activity-based costs in applying the linear programming model to determine the optimal real production mix: an applied study in one of the factories of the General Company for Rubber and Tire Industries

Abstract

      Faultfinder resultant for traditional method use one charging average in allocating overhead costs to produced units , will lead to unreal charging of overhead costs to produced units, and then information product un-relevance no depending in decision-making process and specially product-mix decision , appearance need to method costing used activity objective cost  primary  for allocation overhead costs and then an allocation activity cost to products (services and goods),This research aims to showing role of an activity-based costing method in real in management decisions making process through application linear programming model determining of optimal product mix and its comparing with traditional method .

      This research depends on the following hypothesis:-"Application Activity-based costing method in preparing costs information will ensure relevant information that will assist the management in the real determining of optimal product-mix through using linear programming model.

     The research is divided into four themes, The first theme deals with the research methodology and previous studies. The second theme deal theory side for research ,The three deal application side and The four theme deal important conclusions that revealed by the study and giving the suggested recommendations.