The Role of Integration Between Target Costing and Time-Driven Activity-Based Budgeting Techniques in Managing Time and Cost and its Reflection in Achieving Competitive Advantage
, e | 30 nov 2023
INFORMAZIONI SU QUESTO ARTICOLO
Pubblicato online: 30 nov 2023
Pagine: 187 - 208
DOI: https://doi.org/10.2478/fman-2023-0014
Parole chiave
© 2023 Salah Mahdi Jawad Al-Kawaz et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Figure 1.
The planned unit time cost (1 min) related to the service and administrative cost centers of the laboratory, the research sample for 2019 (Source: Authors’ own research)
| Cost center | Total cost 1 | Annual working hours | Number of annual minutes | Practical energy 80% | Cost per minute |
|---|---|---|---|---|---|
| - | 1 | 2 | 3 | 4 | 1 ÷ 4 |
| Technical affairs 85 workers | 595,088,816 | 157,080 | 9,424,800 | 7,539,840 | 78.9259 |
| Quality control 20 workers | 126,311,090 | 36,960 | 2,217,600 | 1,774,080 | 71.1981 |
| Transportation 23 workers | 159,872,139 | 42,504 | 2,550,240 | 2,040,192 | 78.3613 |
| Stores 24 workers | 160,983,862 | 44,352 | 2,661,120 | 2,128,896 | 75.6185 |
| Maintenance 26 workers | 169,403,000 | 48,048 | 2,882,880 | 2,306,304 | 73.4522 |
| Factory management 50 workers | 322,851,725 | 92,400 | 5,544,000 | 4,435,200 | 72.7930 |
The planned operating cost of the jacket-breast stitching and the knot tying divisions for the year 2019 (Source: Authors’ own research)
| No. | Activity | Activity event time, (min) | Cost per unit time, (dinar/min) | Operating cost |
|---|---|---|---|---|
| - | 1 | 2 | 3 | 3 × 2 |
| 1 | Receiving and transporting raw materials + sewing | 33.58 | 179.6834 |
6033.7686 |
| 2 | Receipt of work order and material order | 1.8 | 287.9086 |
518.23548 |
| 3 | Planning, designing, and evaluation of the template + preparation of work order | 0.9 | 78.9259 | 71.03331 |
| 4 | Document signature | 0.5 | 75.6185 | 37.80925 |
| 5 | Check the work done | 1.25 | 71.1981 | 88.997625 |
| 6 | Maintenance | 1.2 | 73.4522 | 88.14264 |
| 7 | Convert the work done | 1 | 78.3613 | 78.3613 |
| Total | 6916.3482 | |||
A comparison between the exchange rates of direct materials used in the production of men’s suits for the factory and the competing product (Source: Authors’ own research)
| No. | Subject name | Factory men’s suit | The men’s suit for the Turkish competitor | ||
|---|---|---|---|---|---|
| - | Component | Subject | Exchange rate | Subject | Exchange rate |
| 1 | Width lining 150 | Tetron canvas 150 cm wide | 1.7 m | Nylon crepe fabric | 1.5 me |
| 2 | Front sticker | Light gauze 150 cm wide with adhesive granules added | 0.9 m | Light gauze 150 cm wide with adhesive granules added | 0.5 m |
| 3 | Kanoujah | Thick, coarse cloth made of animal hair | 0.5 m | Light fabric tetron | 0.40 m |
| 4 | Tissue adhesive padding | Thick, coarse canvas 150 cm wide | 0.25 m | Translucent fabric 0.90 cm wide | 0.15 m |
| 5 | Pocket lining | Soft tetron fabric or coarse coastal cloth, strong type | 1 m | Regular type satin cloth | 0.5 m |
| 6 | Gauze | Japanese type thick adhesive | 0.0133 m | Gecke light adhesive | 0.01 m |
| 7 | Prime width 50 | Tape used to strengthen the shoulder | 0.0666 m | Tape used to strengthen the shoulder | 0.05 m |
| 8 | Nonsticky, nonwoven filling | Padding placed in the sides of the jacket to strengthen | 0.15 m | Use leftover fabrics to make fillings | - |
| 9 | Nape collar | Woolen cloth, width 90 cm | 0.1 m | Polyester or satin fabric 150 cm wide | 0.10 m |
| 10 | Buttons size 23 | Good-quality fiberglass | 6 count | Normal quality plastic | 6 count |
| 11 | Buttons size 32 | Good-quality fiberglass | 4 number | Normal quality plastic | 4 number |
| 12 | Transparent threads | Soft yarns used for the inner side of the pants | 30 m | Soft yarns used to cuff the pants | 20 m |
| 13 | Normal threads | Natural threads of cotton, linen, or wool | 45 m | Synthetic yarns of nylon or polyester | 15 m |
| 14 | Over threads | Regular linen-like yarn used in trousers | 30 m | Regular linen-like yarn used in trousers | 20 m |
| 15 | Silk threads | Rayon | 30 m | - | - |
| 16 | House of buttons threads (Dukma) | Good-quality soft touch yarn | 25 m | Normal coarse yarn | 10 m |
| 17 | Epaulets | Sponge covered with transparent fabric | 1 pair | A sponge that is covered with excess fabric or its cover is of the same lining as the jacket and is sewn into the jacket from the inside so that the shoulders are equal | 1 pair |
| 18 | Ribbon wrapped around the jacket | Double-sided adhesive tape for reinforcement | 1.5 m | Single-sided adhesive tape for reinforcement | 1 m |
| 19 | Waistband ready | Fabric-coated thick paper tape | 1.32 m | White raw fabric in the form of beams, free of filling | 1.25 m |
| 20 | Zipper | Thick fabric with metal wire to close the zipper | Number 1 | Thick fabric with nylon cord to close the zipper | Number 1 |
| 21 | Hanger | Hanger fixed to the collar from the inside, used for hanging | Number 1 | Hanger fixed to the collar from the inside, used for hanging | Number 1 |
| 22 | Sensitive thermal paper | Double-sided adhesive, of a strong adhesive type, is used on the ends of the feet of the pants and the ends of the sleeves of the jacket, preventing the lining from slipping out | 0.5 m | One-sided tape of the weak adhesive type to give flexibility and freedom to open it and make measurements smaller and larger | 0.25 m |
| 23 | Marking paper | Thick cardboard paper used as separating template | 0.5 m | Light-type cardboard paper | 0.25 m |
| 24 | Mito bar | Paper numbering tape | Number 50 | Paper numbering tape | Number 30 |
| 25 | Size mark | A small piece of cloth with the size of the suit, the country of origin, and the name and mark of the lab affixed to it | Number 2 | A small piece of cloth with the size of the suit, the country of origin, and the name and mark of the manufacturer on it | Number 2 |
| 26 | Care sign | Bag with three spare components (fabric, buttons, regular thread) | Number 1 | Bag with three spare components (fabric, buttons, regular thread) | Number 1 |
| 27 | Kanoujah sticker | Cloth fixing glue | 0.35 m | Cloth fixing glue | 0.25 m |
| 28 | Waist tape | Thick paper material with resin added | 1 m | Transparent paper material with resin added | 0.60 m |
| 29 | Sleeve hole tape | A tape that gives the appropriate texture to the pit and prevents it from sagging | 1.5 m | A tape that gives the right texture to the sleeve hole and prevents it from sagging | 1 m |
| 30 | Fabric | First class Indian fabric | 3.75 m | Turkish cloth | 2.75 m |
| 31 | Clothes hanger | Relationship to the type of plastic | Number 1 | Relationship to the type of plastic | Number 1 |
| 32 | Plastic bag | Nylon bag for suit packing | Number 1 | Nylon bag for suit packing | Number 1 |
| 33 | Suit bag | Fabric and long zipper | Number 1 | Fabric and long zipper | Number 1 |
The planned cost of men’s suit in the men’s clothing factory in Najaf for the year 2019 (Source: Authors’ own research)
| Divisions | Material cost 1 | Operating cost 2 | Manufacturing cost 1 + 2 = 3 | Marketing and administrative cost 10% = 3 × 10% = 4 | Total 3 + 4 |
|---|---|---|---|---|---|
| Sewing the chest of the jacket and tying the kanoujah | 12,574.5 |
6916.3482 | 19,490.8482 | 1949.0848 | 21,439.9330 |
| Preparation and sewing of sleeves | 4933.85 |
4908.8157 | 9842.6657 | 984.2666 | 10,826.9323 |
| Lining preparation | 3454.2 |
4193.5635 | 7647.7635 | 764.7763 | 8412.5398 |
| Prepare the back and collar of the jacket | 7001.32 |
6304.1554 | 13,305.4754 | 1330.5475 | 14,636.0230 |
| Assembling the jacket and attaching the collar to the body | 308.05 |
7532.9720 | 7841.0220 | 784.1022 | 8625.1242 |
| Tying the sleeves | 350.975 |
5099.2134 | 5450.1884 | 545.0188 | 5995.2072 |
| Final sewing, finesse, cleaning, and packing of the jacket | 462.58 |
9216.1624 | 9678.7424 | 967.8742 | 10,646.6167 |
| Sewing the chest of the pants | 6342.8 |
7570.4277 | 13,913.2277 | 1391.3228 | 15,304.5504 |
| Sewing the back of the pants | 5964.05 |
6336.1580 | 12,300.2080 | 1230.0208 | 13,530.2288 |
| Connecting the sides of the pants | 828.705 |
3671.7667 | 4500.4717 | 450.0472 | 4950.5189 |
| Tying the waist of the pants | 4536.92 |
4920.9818 | 9457.9018 | 945.7902 | 10,403.6920 |
| Seat stitching | 359.56 |
2897.3643 | 3256.9243 | 325.6924 | 3582.6168 |
| Strengthening, cleaning, and packing the pants | 1902.84 |
2694.4994 | 4597.3394 | 459.7339 | 5057.0734 |
| Total | 49,020.35 | 72,262.429 | 121,282.78 | 12,128.2779 | 133,411.06 |
Selling prices of men’s suits similar to the manufacturer’s men’s suit product, research sample (Source: Authors’ own research based on interviews with marketing department officials in the research sample factory and some sales agents specialized in selling men’s suits.)
| No. | Competitor product name | Selling price (in dinars) |
|---|---|---|
| 1 | Men’s suit of Turkish origin – first class | 100,000 |
| 2 | Men’s suit of Turkish origin – second class | 70,000 |
| 3 | Men’s suit of Turkish origin – third class | 58,000 |
| 4 | Men’s suit of Chinese origin – first class | 55,000 |
| 5 | Men’s suit of Chinese origin – second class | 50,000 |
| 6 | Men’s suit of Chinese origin – third class | 35,000 |
| 7 | Men’s suit of Italian origin – first class | 95,000 |
| 8 | Men’s suit, Italian origin, mohair fabric – second class | 92,000 |
| 9 | Men’s suit of Italian origin, mohair fabric – third class | 85,000 |
The cost and price of selling men’s suit, model 1121, with rates and material exchange for the year 2018 (Source: Authors’ own research)
| Divisions | Annual direct cost of the division official | Cost per minute | Annual direct cost to the worker | Cost per minute | Annual indirect cost | Cost per minute |
|---|---|---|---|---|---|---|
| Sewing the chest of the jacket and tying the kanoujah = 36 workers | 17,472,000 | 196.9697 | 7,872,000 | 88.7446 | 290,399,052 | 90.9389 |
| Preparation and sewing of sleeves = 10 workers | 19,428,000 | 219.0206 | 9,976,800 | 112.4729 | 86,495,932 | 97.5107 |
| Lining preparation = 14 workers | 22,633,440 | 255.1569 | 7,529,400 | 84.8823 | 86,375,266 | 69.5534 |
| Preparing the back and collar of the jacket = 10 workers | 18,698,784 | 210.7998 | 9,122,868 | 102.8462 | 116,201,521 | 130.9992 |
| Assembling the jacket and attaching the collar to the body = 22 workers | 21,806,544 | 245.8350 | 10,886,688 | 122.7305 | 177,370,599 | 90.8899 |
| Tying the sleeves = 30 workers | 14,792,040 | 166.7573 | 8,473,428 | 95.5248 | 185,303,052 | 69.6335 |
| Final sewing, finesse, cleaning, and packing of the jacket = 25 workers | 10,010,052 | 112.8478 | 7,943,304 | 89.5484 | 201,851,052 | 91.0223 |
| Sewing the chest of the pants = 17 workers | 11,073,300 | 124.8343 | 8,537,784 | 96.2503 | 134,926,599 | 89.4758 |
| Sewing the back of the pants = 29 workers | 8,485,848 | 95.6648 | 8,337,228 | 93.9893 | 215,677,860 | 83.8425 |
| Connecting the sides of the pants = 13 workers | 12,330,120 | 139.0030 | 9,674,340 | 109.0632 | 96,277,860 | 83.4910 |
| Tying the waist of the pants = 10 workers | 10,033,464 | 113.1117 | 8,232,000 | 92.8030 | 33,855,897 | 38.1673 |
| Seat stitching = 22 workers | 1,1225,460 | 126.5496 | 8,779,920 | 98.9800 | 99,373,074 | 50.9217 |
| Strengthening, cleaning, and packing the pants = 1 worker | 14,834,400 | 167.2348 | 8,454,960 | 95.3166 | 68,641,074 | 38.6911 |