Pseudo-Activity-Based Costing Information for Decision-Making in Palestine (Published)
This work aims at making a theoretical contribution about viability of accounting information to enhance resilience in challenging operational conditions. Activity-Based Costing (-ABC) is a newer system that enables managers to cost more accurately, and cost accounting is needed more in Palestinian where Israeli army had erected 648 check points, causing economic recession. This empirical study draws upon a survey of 32 ISO 9000 certified manufacturing enterprises that aspire to modernity. The research question was how do enterprises produce effective costing practices under challenging operational environment in Palestine? The findings of this study have showed that enterprises were able to improvise and to produce their own version of bespoke ABC, termed “pseudo-ABC”. The system tended to display less complexity than the typical ABC systems in UK. “Pseudo-ABC” is utilized by prosperous manufacturers in Palestine. The system could be applied to analogous dire business environment.
Keywords: Activity-Based Costing (ABC), Financial Information, Management Accounting, Non-Financial Information, Palestine, Pseudo-ABC., Traditional Cost Accounting (TCA)