The agreement theory of innovative solution and the strategic approach to cost management in enhancing the objectivity of cost allocation.

Abstract

The current research aims to demonstrate the extent of the possibility of enhancing the objectivity of cost allocation in light of the compatibility of the theory of the innovative solution and the philosophy on which the theory is based and the techniques provided by the strategic approach to cost management. The endeavor of economic entities to build a global competitive advantage through innovation and creativity in all aspects and activities inside and outside the unit is based on a set of techniques and procedures that help them achieve two basic goals, the first of which is reducing costs and the second satisfying the customer with innovative and creative products that add value to him, by transforming creative and innovative ideas. From an intangible idea to tangible results that will increase sales and profitability in the long term in light of strategic cost management to achieve objectivity in cost allocation and provide innovative solutions to the criticisms suffered by the strategic approach to cost management techniques. For the purpose of proving this, a random sample was chosen, With a group of professional and academic cadres related to administrative and accounting specialization, with a ratio of (41) individuals, in order to reach the results of this effect according to the results of data analysis using the statistical program (SPSS) for the purpose of testing hypotheses, as well as a set of measures. Other statistics. The research reached a set of results, the most important of which is that the innovative solution theory contributes to solving problems related to non-financial items that are used as a basis in the cost allocation process, leading to improving financial indicators by reaching the objectivity of cost allocation in light of overcoming the criticisms associated with the techniques of the strategic approach to cost management