Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Using material flow costs accounting to the achieve product sustainability: An applied study in a Wasit weaving and knitting factory.

Author(s): Mohammed Alwan Rahima Al-Eqabi

The research aims to study the effect of using material flow accounting and its importance in providing appropriate information to achieve product sustainability by economic units, especially the availability of appropriate and necessary information in reducing environmental pollution, increasing profits, improving productivity and product sustainability, as the research problem was the weak use of industrial economic units. The information provided by the material flow cost accounting technique improves manufacturing processes, increases profits, and reduces environmental pollution, thus reflecting on the product's sustainability. To test the primary hypotheses of the research, a practical case study was adopted in a Wasit textile and knitting factory, through which the impact of material flow cost accounting procedures on achieving product sustainability indicators was identified. A set of conclusions was reached, the most important of which was that economic units that adopt material flow cost accounting provide information that leads to benefits for environmental preservation, waste management, cost reduction, and contribution to product sustainability, among others. It also appears from the analysis of the results of the practical study that accounting for material flow costs contributes to achieving product sustainability. Product sustainability variables are significantly affected in material flow costs accounting, which fulfills the second hypothesis of the research.

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