The Role of Time-Driven Activity-Based Costing (TDABC) in Value Chain Management of iraqi economic entities

Abstract

 The research aims to highlight the role of Time-Driven Activity-Based Costing (TDABC) in managing the value chain of Iraqi economic units, given the importance of keeping pace with the requirements of the competitive business environment, as traditional methods of cost allocation are no longer sufficient to reflect the complexity of industrial operations and the interconnection of activities.

The study focused on analyzing how TDABC can be used to measure the costs of value chain activities, starting from supplies and production processes to marketing and after-sales services, enabling management to identify activities that add value to customers and support the company’s competitive advantage. The research also seeks to build a conceptual framework that clarifies the relationship between TDABC and value chain management.

The research adopted the descriptive-analytical method in the theoretical aspect to explain concepts and relationships, and the applied method in the practical aspect through a case study at Al-Najaf Garment Factory as the research sample, in order to measure the feasibility of applying TDABC to the value chain in an actual Iraqi industrial environment.

The study concluded that integrating TDABC with the value chain contributes to enhancing the accuracy of cost measurement, improving decision-making, and directing resources toward value-adding activities for managing the value chain, thus achieving better utilization of production capacities for industrial companies.