The impact of the application of material flow cost accounting (MFCA) technology on reducing costs and rationalizing administrative decisions


  • Rzgar Abdullah Sabir College of Administration and Economics, Salahaddin University, Kurdistan-Iraq
  • Honar Haji Hasan Al-Zebari College of Administrative Technology, Department of Accounting Technologies, Duhok Technical University, Kurdistan - Iraq



Material flow cost accounting (MFCA) technology, reduce costs, rationalize management decisions


This study dealt with the effect of applying Material Flow Cost Accounting technology on reducing costs and rationalizing administrative decisions - an applied study on the Brazirin Ready-mix Concrete Factory, and the researcher relied on data and information for the year 2020 obtained through field visits in the factory - The subject of the study, and the research relied on the analytical descriptive approach to test the hypothesis and collect and analyze data according to the material flow cost accounting technique to determine the negative product, waste, emissions, and the optimal utilization of materials and energy more efficiently.
The study aims to identify the possibility of applying Material Flow Cost Accounting (MFCA) technology as one of the most important modern environmental management accounting techniques in improving financial and environmental performance at the same time, which seeks to enhance quantitative and financial information, and the possibility of using this information to reduce costs and achieve a competitive price. and making rational administrative decisions.
The study concluded, through the theoretical and applied aspects, that the Material Flow Cost Accounting (MFCA) technique positively affects cost reduction and rationalization of administrative decisions, when applied by industrial companies, and helps corporate management with appropriate information on positive product cost, negative product treatment, damaged materials and waste, and taking Decisions about cost reduction, pricing decisions, production decisions, and the possibility of applying Material Flow Cost Accounting (MFCA) technology in the Brazirin Ready-mix Concrete Factory in Zakho, as this technology provides both economic and environmental information.
The study recommended the need to adhere to the application of Material Flow Cost Accounting (MFCA) technology, which has been tested and applied to the factory, because of its direct impact on reducing costs and reducing negative products and supporting management with information that helps it make decisions of loss-free production and reduce harmful environmental impacts, and the need to form A team of financial and technical cadres in the use of modern cost accounting and administrative techniques, including the (MFCA) technology, to respond to rapid environmental and technological changes, and achieve productive efficiency.


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How to Cite

Abdullah Sabir, R., & Haji Hasan Al-Zebari, H. (2022). The impact of the application of material flow cost accounting (MFCA) technology on reducing costs and rationalizing administrative decisions. Academic Journal of Nawroz University, 11(4), 266–283.