The Effect of Performance Focused Activity-Based Costing Technique in Measuring the Cost of Consultancy Services: An Applied Study in the Office of Scientific and Consultancy Services – University of Technology

Abstract

The aim of this research is to implement the Performance Focused Activity Based Costing System in scientific and consultancy offices at the The University of Technology. The purpose is to measure the cost of services provided by these offices in order to reduce expenses and calculate the cost of consultancy services according to traditional systems. Additionally, the study seeks to calculate the cost of consultancy services based on the proposed model, which relies on the Performance Focused Activity Based Costing System to achieve more accurate cost calculations. To test the research hypothesis, the study was conducted in the consultancy offices of the The University of Technology. The most significant findings reveal that relying on traditional cost measurement methods and techniques renders these offices unable to keep pace with the developments in the business environment. In contrast, adopting the Performance Focused Activity Based Costing System is capable of reducing costs and enabling these offices to sustain their operations over the years.