Role of Responsibility Accounting in Achieving Competitive Advantage: A Case Study of Al-Amin Factory
Author(s)
Haneen firas Haddam , Dr.Jalelah E.Hulaihel ,
Download Full PDF Pages: 10-29 | Views: 58 | Downloads: 28 | DOI: 10.5281/zenodo.13304545
Abstract
The study aimed to determine the importance of implementing of accountability in economic units and their role in achieving the competitiveness of economic units by dividing economic units into centers of responsibility, distributing functions and powers between centers and ensuring that each center proceeds as planned, This study was based on the hypothesis of information and reports provided by accountability to increase the effectiveness of economic units in promoting competitive advantage. In order to achieve the objectives of the study, an implementation was made to the (Al-Amin) Factory through the use of information provided by the factory including departmental reports (planning, human resources, finance, production) Determining the factory's positions of responsibility and building a proposed organizational structure and then applying the cost-leadership strategy that is a competitive advantage strategy, the study reached a number of important conclusions. The results of the evaluation of the profitability position performance showed negative results, as the value of the variable costs of products exceeded their revenues and thus could not cover their variable costs if the changing margin of contribution to the profit centers appeared (detergents, soaps, removers) negatively, as a result of poor strategy-building for marketing and production processes, The researcher recommends that the cost leadership strategy should be applied to the Soaps Production Section for its effectiveness in reducing the Centre costs if costs decrease by 57% resulting a change in the activity from loss to profit, with the need to increase the efficiency and effectiveness of the production of preparations by conducting field studies of the reality of the demand for remarkable products, take into consideration comparable competitive products and relying on cost-cutting strategies and continuous improvement in the quality of products.
Keywords
accountability system, competitive advantage, positions of responsibility, competitive strategies, performance calendar.
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