Integration of time-driven activity-based costing and activity-based budgeting in preparing budgets for Iraqi economic units

This research aims to demonstrate how integrating the time-driven activity-based costing (TDABC) approach with activity-based budgeting (ABB) can improve budget preparation. Both TDABC and ABB are designed to address the shortcomings of traditional cost measurement and budgeting methods. Additionally, this study seeks to provide information that enables economic units to better predict the resources needed for future periods, ultimately enhancing productivity. It also aims to reduce deviations between budgets and actual costs, while enhancing transparency and accountability by clarifying resource expenditures for regulatory authorities. Moreover, it provides greater accuracy in determining the costs of each activity, as it relies on the time element, which is the main factor affecting the activities in the research sample. The research concluded that applying this integration contributes to improving the efficiency of resource allocation, since resources are directed to activities that consume more time and effort and create higher value, thereby reducing waste. It also helps improve the allocation of resources based on the time spent on each activity and can be used as an indicator to compare the performance of different departments and activities within the college. The research recommends the adoption of this approach in higher education institutions to enhance their efficiency and achieve optimal resource utilization. A holistic approach was used to collect data related to academic and administrative activities in the college, both financial and non-financial, and link them with time rates and resource consumption.