Integrating Activity-based Costing with Continuous Enhancement: A Strategic Approach to Operational Efficiency and Cost Management

The main objective of this research is to show how integrating activity-based costing (ABC) with continuous improvement processes can enhance cost management and operational efficiency. The development of automated firms and global firms has necessitated a shift in principles and measurement accuracy. The principles and concepts have been modified based on economic theory, moving from stable continuous improvement to continuous enhancement, or Kaizen enhancement. The accuracy of the proposed costing system has improved by using modified activity-based costing. The current research has focused on multi-variation in explanatory variables, including the costing system and the degree of enhancement. The suggested costing system should include the modified version of activity-based costing and the new form of continuous enhancement system. The concept of an intelligent supply chain has led to the idea of a cooperative game between all parties in the firm/chain. Intelligent automated systems are closed-loop systems where all members are partners, aiming to maximize global benefits. Resilient considerations indicate different attempts to measure and estimate the multi-effects of externalities and other external effects. This work has closed-to-open excess quantitative models, achieving the cooperative state between different partners. Findings show that ABC helps manufacturing and service sectors identify non-value-adding activities, optimize resource allocation, and reduce costs by providing detailed insights into the true cost of operations. Its integration with continuous improvement strategies amplifies these benefits, enabling businesses to streamline processes, improve efficiency, and enhance profitability. ABC is a valuable tool for identifying non-value-adding activities and optimizing resource allocation. By providing a more accurate understanding of how resources are consumed, ABC can help organizations improve their efficiency, reduce costs, and enhance customer satisfaction.