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Abstract

The purpose of this study is to justify the role of The green value chain as a modern technique of management accounting in facilitating investment decisions and optimizing the effectiveness in resources utilization at industrial units. The premise underlying the study is that green value serves as a frame of reference for analysing activities, which in turn allows to separate value-adding from non-value adding ones, leading to cost reduction and environmental soundness. Management is also not about finding faults for waste and allocating funds, it's all about tapping new ways of creating value by eliminating non-value adding activities. The deductive method was adopted in the theoretical aspect of the research, moving from generalities to specifics. The inductive method was adopted in the practical and applied aspect of the research. It was concluded in the study that green value chain can significantly improve the resource allocation efficiency and reduce cost when it is employed to implement a systemic and actual-data-centered analysis programme. The research was applied in the field at the Diwaniyah Dairy Factory, which belongs to the General Company for Food Products, as the research sample. The research aimed at emphasizing the mechanism of green value chain in breaking down processes by which production or services are broken into a set of interrelated activities and analyzed from value and environment viewpoint as well as its role in providing decision-makers with better information plan, it has concluded that despite the fact that, However The green value chain can be seen as an effective tool to support resource allocation decisions because helping management refocuses resources on high-value and sustainable processes according to financial resource-draining projects, thereby enhancing operational efficiency at all times while supporting a trend toward industrial development sustainability. The most important result of the research is that the use of strategic management accounting methods leads to an improvement in the quality of management decisions and performance evaluation, by supporting the efficiency of resource allocation and reducing costs, which enhances the competitive performance of economic units, which helps management to allocate resources more efficiently and reduce unnecessary costs.

Keywords

Green value chain, Resource allocation, Cost reduction, Non-value-added costs

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