The Impact Of The Current Situation For Establishing a Cost System In The Public Sector And The Possibility Of Calculating Costs Based On Activity (A Case Study Of Government Institutions In The City Of Kut)

Abstract

In recent decades, governments have been under more pressure than before to improve efficiency and effectiveness, and this requires them to use systems. Navin has made accounting, which is the traditional costing system. Due to its significant shortcomings, it cannot meet the needs of the public sector. On this basis, modern costing systems are used. Such activity-based costing today in many developed and developing countries. The purpose of this research is to investigate the current situation of establishing a cost-pricing system in the public sector and the possibility of applying activity-based pricing in government institutions in Kut, Iraq. The statistical population of the current research is 300 people, all employees in the accounting and finance departments in the government departments in the city of Kut, Iraq, using the Cochrane equation, the number of the sample was determined to be 168 people, and the questionnaire was distributed to the same number and 114 completed questionnaires were collected. In order to test the hypotheses from a one-sample t-test and path analysis using smart-PLS software was used. The results of this research showed that the current situation for establishing the cost system in the public sector in Kut, Iraq, is favorable. In addition to these results, it was found that the horizon of applying activity-based pricing in government institutions is favorable in terms of the driving factors (readiness of human resources), the expected conditions, and the required tools, however, the lack of the necessary tools poses many obstacles. For the facility, there is pricing based on activity in government institutions. Finally, the results showed that the current status of the cost system has a positive and significant impact on the motivations (human resources readiness) for publication, the expected conditions for publication, the publishing strategy, and the tools required for publication. Obstacles to creating activity-based costing have a negative and significant impact. These results confirm the effect of the state of the costing system for the labor sector on the probability of implementing the activity-based costing system.