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E-ISSN : 2249 - 4642 | P-ISSN: 2454 - 4671
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Using on Green Activities Based Costs to Measure Costs and Improve Management Decisions
Hanan Suhbat Abd-Allah, Mohammed Rady Abd Alkadm
Volume: 13 Issue: 1 2023
To move towards sustainability companies introduce “green initiatives” – ways of doing business that have fewer negative consequences for the Earth’s resources, create new products and manufacturing processes that use recycled materials to reduce the amount of waste going to landfills, and also recognize the need to be socially responsible With regard to production processes, companies face pressure to become (green) or more environmentally friendly, so they had to review their production processes as a result of pressure from society and governments, and awareness of the natural environment was reflected in creativity and environmental awareness in products offered to consumers in recent years, and manufacturing is considered Green is a relatively new concept that can be considered as one of the products of the nineties. The method of green activity based costing is one of the modern management accounting techniques and one of the green accounting tools that work to define green activities in the company and determine the appropriate costs for each activity according to the consumption of each activity, and then determine the costs of products based on appropriate cost drivers, costing based on green activities helps identify and analyze activities into value-adding and non-value-adding. Adding value, which helps management in excluding non-value-adding activities, as well as helping to provide appropriate information to decision makers to help determine the optimal combination of product mix that achieves the highest profits.
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