Using Activity-Based Costing System (ABCS) in Determining the Cost of Medical Services (Case Study).

Abstract

#The importance of cost information is increasing in the environment of service organizations, transforming them from resource consumers to productive entities by delivering outstanding services. This necessitates continuous development and improvement in their service performance through the enhancement of their cost information systems. This shift involves moving away from traditional cost accounting systems towards activity-based costing systems, aiming to achieve the effectiveness of cost accounting as a key tool for measuring the costs of provided services. Additionally, it involves providing activity-based information by integrating activity-based costing systems with activity-based management and value analysis to serve the strategic management purposes, supporting cost management and achieving the strategic objectives of service organizations. Therefore, this research focuses on the application of activity-based costing systems in service organizations. This is to address the growing criticisms of traditional cost accounting systems, which have become ineffective in measuring the costs of provided services and providing activity-based information to support cost management and meet the strategic management requirements of service organizations. The importance of service provision is no less than the production of goods in industrial establishments, considering that services fulfill the needs of communities, including the Yemeni society. This necessitates the attention of researchers in the field of accounting to focus on service organizations, as they fall within the state's orientations and its interest in civil government and non-governmental organizations. The goal is to develop their performance, create added value for the organization and its clients, and compete in service delivery.