Adopting Activity-Based Resource Planning (ABRP) for Rationalizing the Operating Budget: An Empirical Study
DOI:
https://doi.org/10.55202/ajcas.v4i2.268Keywords:
APC Planning, Activity Based Costing , Operating Budget, Cost AccountingAbstract
The paper aims to demonstrate the importance of using activity-based resource planning (ABRP) as a contemporary accounting technique and its significant role in developing the performance of the economic unit compared to traditional cost methods and to determine the role of the activity-based resource planning (ABRP) approach in rationalizing the preparation of operating budgets while demonstrating the effectiveness of the activity-based resource planning (ABRP) system in preparing operating budgets. To achieve these goals, the study sought to use the applied method on the data of the Middle Refineries Company (Dura Refinery - Samawah - Najaf - Diwaniyah - Karbala) in Baghdad for the year (2019) through field visits and personal interviews with department managers and employees to apply the activity-based resource planning (ABRP) technique and demonstrate its impact on rationalizing the preparation of operating budgets for the economic unit, the research sample. The results show that the application of the Activity-Based Resource Planning (ABRP) system allows for the provision of information that helps in the planning process by preparing the budget based on ABC activities that focus on customer requirements, analyzing their needs, and linking them to strategic objectives, in addition to accounting for resource consumption that depends on the resources of the economic unit. A significant decrease in total costs was observed when applying the Activity-Based Resource Planning (ABRP) system technology.
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Copyright (c) 2025 Salah Hasan Naji Alhar, Assist. Prof. Dr Hatem Karim Kadhim Al mamouri
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