Application of Material Flow Cost Accounting to Soybean Oil Production Process: A Systematic Review

Abstract

Purpose –This study aims to provide an in-depth review of the application of the material flow cost accounting (MFCA) technique. It also provides a detailed account of how the technique can be applied in soybean oil processing, emphasizing its significance, key components, and potential benefits. Methodology - This paper adopts the literature review approach to explain the impact of applying the MFCA technique to the soybean oil production process. It provides insights into how MFCA can be effectively applied and implemented in this context. It aims to identify and quantify the environmental and economic costs associated with material usage, waste generation and management, and energy consumption. Findings - When applied to soybean oil production, MFCA provides insights into process efficiency, waste reduction opportunities and potential cost savings. It is concluded that applying the MFCA technique to the soybean oil production process will bring about cost reduction, waste reduction and environmental sustainability. Implications – The study’s scope and focus did not include a practical application of the MFCA technique to the soybean oil production process. However, if all the steps discussed in this study are diligently followed, it is believed that the technique can be successfully applied in soybean oil production. Originality – The study provides an original insight into the application of the MFCA technique, which is yet to be done to the best of the researchers’ knowledge.