Presenting a Beyond Activity-Based Costing System (BABCS) Model with a Real-Time Reporting Approach in Governmental Organizations of the Kurdistan Region

The objective of this study is to present a Beyond Activity-Based Costing System (BABCS) model with a real-time reporting approach tailored for governmental organizations in the Kurdistan Region.

This research is applied in purpose and utilizes a mixed-methods (qualitative-quantitative) approach. Data were collected through interviews and a researcher-designed questionnaire. The study sample consisted of university faculty members, government officials, managers, experts, and specialists in the research field. The factors for BABCS implementation were categorized into thirteen main groups, which were further divided into domains relevant to costing and real-time reporting.

The analysis identified seven main categories of factors pertinent to costing, including organizational-behavioral, technical, economic, design and implementation, legal, external, and policy-related factors. Additionally, six categories relevant to real-time reporting were identified, such as business intelligence, performance-based costing with a real-time approach, IT infrastructure, technical and communication challenges, process orientation, cloud processing, and expandable reporting. Evaluation of the current conditions in Kurdistan Region governmental organizations indicated that only the "legal factors" are in a relatively favorable state, while other factors remain suboptimal. A significant positive relationship was found between activity-based costing factors and real-time reporting, with organizational and behavioral factors exhibiting the strongest association. The results showed that a performance-based costing approach with real-time reporting has the potential to improve the performance of governmental organizations in the Kurdistan Region by 65%.

The study underscores the necessity of addressing organizational and technological factors to optimize BABCS implementation and enhance efficiency in public sector reporting and management.