Affiliations:
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
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.
Time-driven activity-based costing, Resource-consumption accounting, Hybrid costing approach, Strategic cost reduction, Product life cycle costing
https://doi.org/10.21833/ijaas.2026.02.022
Al-Hibari, A., Alkebsee, R., Al-Matari, E. M., Alsayegh, A., & Moustafa, A. M. (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. https://doi.org/10.21833/ijaas.2026.02.022