Pseudo-activity-based costing information for decision- making in Palestine

The research question was how do enterprises produce effective costing practices under challenging
operational environment in Palestine? This work aims at making a theoretical contribution about the way
businesses adapt product costing to enhance resilience in challenging operational conditions in implementing
strategic management planning. This study argues that Traditional Cost Accounting (- TCA) is gradually
becoming less relevant in the present climate of global competitive business. Also, financial and nonfinancial
information become not reliable for management planning. Such problems become a more urgent
priority when the external environment is exceptionally restrictive as the case is under Israeli army
occupation in Palestine. Activity-Based Costing (-ABC) that is a newer system that enables managers to cost
more accurately, is the system without a business has hindered its commercial viability. This empirical study
draws upon a questionnaire survey of ISO 9000 certified manufacturing enterprises. Enterprises in Palestine
were shown to improvise, producing their own version of bespoke ABC, termed “pseudo-ABC”. The
system had tended to display low complexity. Chi-square tests and Cramer’s V values show significant
variables association in understanding the problems they encountered. “Pseudo-ABC” generated the right
information to aid decision-making at a far less cost than standard ABC UK systems