Employing the costing technique based on time-directed activities (TDABC) to improve production efficiency - an applied study in the Diwaniyah Tire Factory

Abstract

  The research aims to shed light on the time-driven activity-based costing (TDABC) technique and its role in improving productivity efficiency in the economic entity. The main hypothesis is that "the use of TDABC technology helps the economic entity in improving production efficiency through optimal utilization of resources and rationalization of costs." The study sample was the Diwaniyah Tires Factory, one of the General Companies for Rubber and Tire Industries factories. The researcher applied the TDABC technology to the factory data for the year 2017 as well. Conducting personal interviews with the workers in the factory from all specializations,  as the researcher adopted the applied study method to test the main research hypothesis and reach a set of results, the most important of which is that the application of TDABC technology on the cost of the product is more consistent with the actual use of resources in the company compared to traditional costing methods, The TDABC technology provides more important information on cost and pricing, which in turn It can improve manufacturing efficiency and thus improve product to rationalize costs.