“Pseudo- Activity-Based Costing Practice for Decision-Making in Palestine: An Empirical Evidence-2”

Abstract

The research question was how do enterprises produce effective costing practices under challenging operational environment in Palestine? This work aims at making a theoretical contribution about the way businesses adapt product costing to enhance resilience in challenging operational conditions in implementing strategic management planning. This study argues that Traditional Cost Accounting (-TCA) is gradually becoming less relevant in the present climate of global competitive business. Also, financial and nonfinancial information become not reliable for management planning. Such problems become a more urgent priority when the external environment is exceptionally restrictive as the case is under Israeli army occupation in Palestine. Activity-Based Costing (-ABC) that is a newer system that enables managers to cost more accurately, is the system without a business has hindered its commercial viability. This empirical study draws upon a questionnaire survey of ISO 9000 certified manufacturing enterprises. Enterprises in Palestine were shown to improvise, producing their own version of bespoke ABC, termed "pseudo-ABC". The system had tended to display low complexity. Chi-square tests and Cramer's V values show significant variables association in understanding the problems they encountered. "Pseudo-ABC" generated the right information to aid decision-making at a far less cost than standard ABC UK systems