PSEUDO-ACTIVITY-BASED COSTING INFORMATION FOR DECISION MAKING IN PALESTINE

This work aims at making a theoretical contribution about viability of
accounting information to enhance resilience in challenging operational conditions.
Activity-Based Costing (-ABC) is a newer system that enables managers to cost more
accurately, and cost accounting is needed more in Palestinian where Israeli army had
erected 648 check points, causing economic recession. This empirical study draws upon a
survey of 32 ISO 9000 certified manufacturing enterprises that aspire to modernity. The
research question was how do enterprises produce effective costing practices under
challenging operational environment in Palestine? The findings of this study have showed
that enterprises were able to improvise and to produce their own version of bespoke ABC,
termed “pseudo-ABC”. The system tended to display less complexity than the typical ABC
systems in UK. “Pseudo-ABC” is utilized by prosperous manufacturers in Palestine. The
system could be applied to analogous dire business environment.