Achieving Cost Leadership through the Use of Attribute-Based Costing Technique – An Applied Study

Abstract

The study seeks to clarify the role of Attribute -based costing in achieving cost leadership in industrial companies. It examines the relationship between the two variables through an applied study conducted at Al-Hilal Company for Red Brick Manufacturing, by analyzing the factory’s cost statements with the aim of determining costs according to the Attributes required and desired by the company’s customers in order to achieve cost leadership. The study reached a set of conclusions, the most important of which is that Attribute -based costing plays a significant role in achieving cost leadership in industrial companies. In conclusion, the researchers recommend adopting modern costing techniques rather than relying on traditional methods of cost measurement, due to the role these techniques play in achieving cost leadership.