The Role of Green Activity-Based Costing in Achieving Sustainability Development: Evidence From Iraq

Abstract

Purpose: This study aimed to assess the effects of applying green activity-based costing (GABC) on the Sustainability Development of companies. Theoretical framework: The theoretical framework included highlight on environmental issues, and the role of Modern methods of Cost and managerial accounting in reducing the harmful effects of industrial waste. Design/methodology/approach: there are variety of reasons to carry out the study; including regulatory compliance, sustainable consumption, public perception, potential competitive advantages, and the impact of Sustainability Development on economic performance, stakeholders are urging or requiring organizations to be more ecologically conscious with regard to their products and operations. In order to accomplish the study's goals, it was implemented at the Basra Oil Refinery and based on actual data from the study sample's activity. method was relied upon distribution of costs based on green activity, the identification of its effects on the facility's Sustainability Development, and the creation of a model for the use of GABC. Findings: According to the results of the experimental study, the study's findings that GABC may be used to assign expenditures based on green activity and to show how it affects both economic and Sustainability Development. Research, Practical & Social implications: Because all manufacturing and consumption activities have some sort of negative impact on the environment during the creation, use, and disposal phases of their respective value chains, environmental management issues have recently been linked to the economy. Originality/value: The research value of our current study, by employ modern methods of commissioning accounting in Iraqi manufacturing companies.