The Impact of Integration between Attribute Based Costing and Activity Based Costing on Financial Performance

The objective of the study is to study and analyze the importance of combining and combining the cost of activities and the cost of the cost of the specifications with the management of the cost aspects (internal and external), the financial and competitive performance of the companies in general and applied to the construction sector in particular. The most important of these results are the following: The entrance to the cost of activities faced many criticisms, most notably the focus on the activities and operations of the company and neglecting the needs and desires of customers, which is the purchasing power of any product. Therefore, the goal of developing traditional cost systems for industrial companies has become an indispensable goal for them to continue in the modern industrial environment and to ensure that they maintain their current customers and attract new customers. The cost input of the specifications depends on the distinction between the basic specifications of the product, which makes it achieve the minimum satisfaction of the wishes of the customers, and they exist in all kinds of competing alternatives to the product. The specifications of the product are those which distinguish a particular product from its competing alternatives, for example the safety component of a particular type of vehicle with a price category. Finally, the motivational specifications: they are accepted by customers compared to the products of competitors, and are not considered the basis of the purchase decision, which is not necessarily a high-cost specification. The input cost of the specifications focuses on the wishes and requirements of the customers when designing the products, thus helping to provide a variety that satisfies the multiple and renewable desires. The industrial companies rely on a cost-effective approach that combines the benefits of the entrance of the costs of activities and the cost of specifications. Finally, the results of the applied study confirmed the positive of the integrated approach between the entrance of the costs of activities and the introduction of the cost of specifications on the financial situation of an Egyptian construction company.