International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

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 Volume 13, Issue 2 (February 2026), Pages: 212-219

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 Original Research Paper

The impact of integrating capacity-based cost approaches on strategic cost reduction during the product design and implementation phases

 Author(s): 

Adeeb Al-Hibari 1, Radwan Alkebsee 2, Ebrahim Mohammed Al-Matari 3, *, Abdulkarim Alsayegh 4, Alsadig M. Moustafa 1

 Affiliation(s):

1Applied College, King Khalid University, Muhyle, Saudi Arabia
2Department of Accounting, College of Business Administration, University of Tabuk, Tabuk, Saudi Arabia
3Department of Accounting, College of Business, Jouf University, Al-Jouf, Saudi Arabia
4Accounting Department, Sadat Academy for Management Sciences, Cairo, Egypt

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 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0000-0001-9247-2766

 Digital Object Identifier (DOI)

  https://doi.org/10.21833/ijaas.2026.02.022

 Abstract

This study proposes an integrated costing approach that combines the advantages of Time-Driven Activity-Based Costing (TDABC) and Resource-Consumption Accounting (RCA). The proposed method, referred to as Time-Driven Resource-Consumption Accounting (TDRCA), integrates the single time-driver concept of TDABC with the resource-based activity structure of RCA. The aim is to overcome the limitations of each individual method and provide a more effective tool for strategic cost reduction. The study is mainly theoretical and descriptive, focusing on how the integrated approach can support cost reduction during the product design and implementation stages. The proposed framework identifies costs based on resource consumption and links them with strategies that reduce unnecessary resource usage and improve capacity utilization. The findings suggest that integrating TDABC and RCA can provide more accurate cost information and help organizations implement effective cost-reduction strategies across the product life cycle.

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

Time-driven activity-based costing, Resource-consumption accounting, Hybrid costing approach, Strategic cost reduction, Product life cycle costing

 Article history

Received 18 October 2023, Received in revised form 5 February 2026, Accepted 19 February 2026

 Acknowledgment

The authors extend their appreciation to the Deanship of Research and Graduate Studies at King Khalid University for funding this work through a large-group Research Project under grant number (RGP.2/141/46). 

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

Al-Hibari A, Alkebsee R, Al-Matari EM, Alsayegh A, and Moustafa AM (2026). The impact of integrating capacity-based cost approaches on strategic cost reduction during the product design and implementation phases. International Journal of Advanced and Applied Sciences, 13(2): 212-219

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