The Role of Activity-Based Costing in Achieving Cost Control in Libyan Industrial Companies ( A field Study on the National Cement Company )

Abstract

This study focuses on the role of activities costing in controlling cost elements at Libyan industrial companies (specifically, the National Cement Company). Data was collected through a questionnaire distributed across four factories, totaling 60 questionnaires. Of these, 54 were statistically validated. The study employed several statistical methods to test its hypotheses and utilized a descriptive-analytical approach. The field results, based on the statistical analysis, demonstrated the effectiveness of ABC in controlling cost elements (direct materials, direct labor, and indirect manufacturing costs) at the National Cement Company. The study recommends that the National Cement Company's management implement ABC due to the valuable information it provides for cost control. Furthermore, the study urges the company's management to expedite the adoption of ABC, given its ability to accurately determine indirect costs, thereby enhancing the company's competitiveness.