“Pseudo- Activity-Based Costing Practice for Decision-Making in Palestine: An Empirical Evidence-2”

The research question was how do enterprises produce effective costing practices under challenging operational environment in Palestine? This work aims at making a theoretical contribution about the way businesses adapt product costing to enhance resilience in challenging operational conditions in implementing strategic management planning. This study argues that Traditional Cost Accounting (TCA) is gradually becoming less relevant in the present climate of global competitive business. Also, financial and nonfinancial information become not reliable for management planning. Such problems become a more urgent priority when the external environment is exceptionally restrictive as the case is under Israeli army occupation in Palestine. Activity-Based Costing (-ABC) that is a newer system that enables managers to cost more accurately, is the system without a business has hindered its commercial viability. This empirical study draws upon a questionnaire survey of ISO 9000 certified manufacturing enterprises. Enterprises in Palestine were shown to improvise, producing their own version of bespoke ABC, termed “pseudo-ABC”. The system had tended to display low complexity. Chi-square tests and Cramer’s V values show significant variables association in understanding the problems they encountered. “Pseudo-ABC” generated the right information to aid decision-making at a far less cost than standard ABC UK systems