EVALUATING THE PERFORMANCE OF THE ECONOMIC UNIT USING RESOURCE CONSUMPTION ACCOUNTING AND THE BALANCED SCORECARD

Abstract

This paper aims to demonstrate both the accounting of resource consumption and the balanced scorecard as contemporary accounting techniques and their major role in developing the performance of the economic unit in comparison with the traditional cost-effective methods. It also highlights the role of accounting for resource consumption in supplying sufficient knowledge to incorporate the Balanced Scorecard technologies and describes its effects on the efficacy of performance management and clarifies issues of complementarity between accounting for resource consumption and Balanced Scorecard viewpoints. In order to achieve these goals, the research relied on the data of the men's clothing factory in Najaf for the year 2018, through field visits and personal interviews with department directors and employees in order to apply the technique of accounting for resource consumption and the balanced scorecard and the effect of their integration on the evaluation of the efficiency of the performance of the economic unit. . The results show that the integration between resource consumption accounting (RCA) and the balanced scorecard (BSC) leads to an increase in the efficiency of the financial and non-financial indicators of the four perspectives of the balanced scorecard (financial, customer, internal operations, and learning and growth perspectives). Consequently, it will lead to an increased evaluation of the performance efficiency of the economic unit of the research sample.