TY  - JOUR
T1  - Using Resource Consumption Accounting for Improving the
Competitive Advantage in Textile Industry
AU - Almagtome, Akeel Hamza AU - Kbelah, Sarah Isam AU - Amusawi, Enaam Ghadeer 
JO  - Journal of Engineering and Applied Sciences
VL  - 14
IS  - 2
SP  - 575
EP  - 582
PY  - 2019
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2019.575.582
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2019.575.582
KW  - Resource consumption accounting
KW  -competitive advantage
KW  -activity based costing
KW  -traditional
costing system
KW  -textile industry
KW  -costing system
AB  - 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.
ER  -