The Effectiveness of Implementation Material Flow Cost Accounting (MFCA): A Case Study in The Standard Concrete Company in Duhok

Abstract

This study aims to explore the role of Material Flow Cost Accounting (MFCA) in enhancing both financial and environmental performance in industrial companies. The importance of this research stems from the fact that MFCA is one of the most advanced techniques in environmental management accounting, providing quantitative and monetary data that contribute to improving cost control and supporting decision-making processes, thereby achieving competitive pricing advantages. The study adopted a descriptive–analytical approach by analyzing data and reports of Standard Concrete Company in Duhok during the study period. It tested the research hypotheses, highlighted the main challenges facing MFCA implementation, and demonstrated the limitations of traditional costing systems. The findings revealed that the application of MFCA effectively reduces costs and supports competitive pricing policies, as it provides accurate data on emissions, waste, and costs related to both positive and negative products. The analysis showed that positive outputs accounted for 96.126%, while negative outputs represented 3.874%, which included 77,745 liters of water, 5,874 electricity units, 4,226 liters of fuel and lubricants, 261 tons of cement, 460 tons of sand, 280 tons of gravel, and 453 cubic meters of concrete debris. The study concluded that MFCA can be successfully implemented in Standard Concrete Company and plays a pivotal role in reducing waste, cutting costs, and promoting cleaner production. It recommends expanding the application of MFCA in other industrial firms and emphasizes the importance of forming specialized and well-trained teams in modern cost and management accounting practices to address environmental and technological challenges.