The effect of applying cost technology based on specifications to reduce costs in Iraqi economic units

Abstract

Most of the Iraqi economic units suffer from the high costs of their products and they
lack the application of modern methods of measuring and determining the cost and their
lack of use of contemporary cost technologies that would reduce the costs of products and
improve the competitive position of the economic units.
Reducing costs is one of the most important strategies adopted by economic units to
achieve competitive advantage and needs an integrated cost management framework to
reduce this. Hence, the process of relying on traditional systems for measuring costs
should be reconsidered. Therefore, the current study aimed to explain the role of cost
technology on the basis of specifications in reducing the cost of production, and to achieve
this goal was applied in one of the factories of the Leather Industries Company in the field
of coexistence method, conducting personal interviews and analyzing data. The research
concluded with a set of conclusions, the most important of which is that the application
of production technology on the basis of specifications contributes to reducing the cost of
production in the economic unit, and the most important recommendations were to adopt
the economic unit production technology on the basis of specifications in order to reduce
the cost of its products and provide them at prices that meet the desires of customers.