@article{MAKHILLJEAS201914217362,
    title = {Using Resource Consumption Accounting for Improving the
Competitive Advantage in Textile Industry},
    journal = {Journal of Engineering and Applied Sciences},
    volume = {14},
    number = {2},
    pages = {575-582},
    year = {2019},
    issn = {1816-949x},
    doi = {jeasci.2019.575.582},
    url = {https://makhillpublications.co/view-article.php?issn=1816-949x&doi=jeasci.2019.575.582},
    author = {Akeel Hamza,Sarah Isam and},
    keywords = {Resource consumption accounting,competitive advantage,activity based costing,traditional
costing system,textile industry,costing system},
    abstract = {Due to increasing competition in the Iraqi Textile Industry, the cost reduction has become an essential
to improve the competitive advantage of local companies. This study aims to explore the role of Resource
Consumption Accounting (RCA) in improving the competitive advantage of Iraqi Textile Companies based on
a case study implemented in an Iraq State Textile Factory. In order to explore the role of implementing of RCA
in achieving a cost-effective competitive advantage, a case study was carried out in the Hila Textile Factory to
determine the existing costing system and then the quantitative analysis was carried out to indicate how RCA
implementation can improve the competitive advantage of the case study factory. The findings show that RCA
considers idle capacity by separating total costs into variable and fixed and consequently assign lower total
costs for the products in comparison with the traditional costing system. It also provides more accurate and
reliable cost information that leads to achieve a cost-effective competitive advantage by refining the product
cost. Therefore, implementing of RCA helps the administrators of local textile industry to set a lower product
price and then gain a competitive advantage. The study presents insights on how to measure the cost of idle
capacity in the textile companies. In addition because the previous literature has documented a little attention
by researchers this study fill up the gap in the literature by examining the impact of RCA on competitive
advantage in the context of textile industry.}
    }