The Role Of Time-Oriented Functions based cost system In Reducing Costs Under The Strategic Cost Management Approach

Abstract

Technological progress and development and the automation of production processes have made the traditional approach to cost management incompatible with these developments and the administration's need for a complex mixture of quantitative information related to the objective measurement of costs, especially indirect ones, as well as non-quantitative information related to the customer, his needs and desires, all of which reflected the need to move to an approach based on customer relationship management With a strategic dimension that takes into account the developments in the competitive environment, the current research aims to demonstrate the extent of the ability of cost technology to operate on the time-drive functions based cost as a strategic tool that is compatible with developments in the process of allocating indirect costs and the extent of its ability to provide financial and non-financial information on unutilized energy and jobs non-adding value with the aim of eliminating it by achieving a real reduction in product costs. The results of the statistical analysis indicated the highest mean (4.15), standard deviation (86%), and coefficient of variation (20.09) within the percentage weight of (73.33) that the agreement of the cost technique on the time-drive functions based cost and the strategic approach to cost management works to reallocate indirect costs based on the time vectors used to complete each function of the product, providing information to the management of the economic unit about unused energy and non-value-adding functions in a way that achieves the possibility of reducing production costs without affecting the quality of the product and the customer's desires