The Use of Time-Driven, Activity-Based Cost Approach (TD-ABC) on Profit-Management Practices (An Applied Study on the Commercial Banks Operating in Saudi Arabia)

Document Type : Original Article

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Assistant Professor of Accounting - Shaqra University

Abstract

This study aims to identify the impact of using the time-driven activity-based costing approach (TD-ABC) on earnings management practices. The study relied on the descriptive analytical approach. The study population included managers of local commercial banks (11) operating in Riyadh, the Kingdom of Saudi Arabia, which consists of all general managers, heads of departments and divisions, numbering (1659) managers according to the data available on the websites of these banks on the Internet as well as reports for the year 2023. A random sample of (428) paragraphs was taken. The study concluded that banks operating in Riyadh use the cost approach based on time-driven activities to a reasonable degree, and the most important recommendations of the study were the importance of applying the cost approach based on time-driven activities because of its effectiveness in providing more accurate information about the level of efficiency of each activity and within each activity at the level of founding activity branches.

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