The effectiveness of using material flow cost accounting to eliminate losses

Muqdad Ahmed Nouri


This investigation aimed to explain the mechanism of MFCA by applying this method on air-cooled engine factory which was suffering from high production cost. The results of this study revealed that MFCA is a useful tool to identify losses and inefficiencies of the production process. It is found that the factory is suffering from high losses due to material energy and system losses. In conclusion, it is calculated that system losses are the highest among all the losses due to inefficient use of available production capacity.

Palabras clave

Material Flow, Cost Accounting, Management

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Universidad del Zulia /Venezuela/ opción/ /ISSN: 1012-1587/ ISSNe 2477-9385

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Este obra está bajo una licencia de Creative Commons Reconocimiento-NoComercial-CompartirIgual 3.0 Unported.