The Role of Resource Consumption Accounting in Achieving Competitive Prices and Sustainable Profitability

Abstract

This study examines the roles of resource consumption accounting and competitive prices in attaining sustainable profitability. The objectives were (1) to determine whether the adoption of resource consumption accounting practices yields significant improvements in competitive strategies in a highly competitive situation where activity-based costing has proved to be insignificant, and (2) to ascertain if the positive relationship between competitive pricing and sustainable profitability is increased by the extent to which resource consumption accounting exerts pressure for sustainability profitability. A PLS-SEM procedure was applied in analysing 129 of the top 30 performing companies’ structured questionnaire responses drawn from five industries in Kurdistan from 2021. The empirical results demonstrated that competitive pricing models involving resource consumption accounting systems provide superior price forecasting, error reduction and profit maximisation capabilities than existing energy models. The study’s outcomes highlight that the extent to which resource consumption accounting exerts pressure on sustainability profitability significantly increases the positive relationship between competitive pricing and sustainable profitability. The results of this study advance construct and item development involving competitive pricing and resource consumption accounting while testing relationships to uncover the moderating role of resource consumption accounting in profit maximisation. Thus, energy and non-energy industrial companies must rely on resource consumption accounting to set competitive prices and enhance and sustain their profitability by considering the overlooked energy pricing stochastic parameters and errors amid rising energy shortages and costs.

The effect of the accounting conservatism on reducing information asymmetry and the cost of capital within the framework of international standards

“…The main limitation of current paper was time, cost, and not available some related source (Mustafa et al, 2022). Finally, the study reached a number of results based on the aforesaid studies, the most important of which is found that adherence to international standards and accounting conservatism contribute to increasing the quality and continuity of profits and the ability of shareholders to forecast future cash flows on the one hand and increase the level of relevance, reliability and quality of financial information by reducing information asymmetry and on the other hand, as well as increasing investments in the company to match the information provided to investors (Jaf et al, 2019 andRashid, 2020).…”

Unifying the budget accounts in accordance with the financial accounting system and their compatibility with international accounting standards

“…Therefore, it is impossible to say that a concept is rejected or accepted based on its ability and necessity for objective measurement. The figure shows the defined procedures, because these attributes will change with the development of scientific research and find measurement methods and modern measurement methods and reasonable degree of objectivity (Mustafa et al, 2022).…”

The relationship between intellectual capital and financial performance: a case study of Kurdistan Region of Iraq

“…A small shift was made when activity-based costs (ABC) were introduced (Sabir et al, 2011). This represented certain advancement, as costs per individual activity could be controlled in a better way and provided some sort of connection with the whole (Mustafa et al, 2022). Regardless of this, the measuring system based on cost accounting has proved totally inadequate for contemporary circumstances.…”