Suggested Model for Measuring Deviations of Resource Consumption Accounting (RCA) (Case-Study on Louran Hospital)

In General, we can say that the main objectives to apply the activities of the costs focused on the measure of the cost in an appropriate, fair, and accurate form, achieve the control over the cost elements, and provide cost information relevant to decision makers. And there are many of the writers and researchers that show up a lot of criticism to the ability of the traditional cost approaches [Volume approach, Activities approach (ABC), and Time Driven Activities approach (TDABC)] to achieve these objectives. As also, many studies showed  the benefits of applying the Resource Consumption Approach (RCA) in this range where it combines the German cost accounting (GPK) and the activity accounting (ABC). So, According to the fundamental principles of the resource consumption accounting (RCA), this paper sets up a suggested model analyzes errors that may occur during the implementation process of RCA, and conducted a case study on louran hospital .The results show that RCA development to the costs deviations system based on its new concepts, principles, and pillars makes it able to provide with accurate information that express for the real deviations of the resources of the organization and also the efficiency of these deviations and their indicators in the judgment on the performance, the exploitation of resources, and the provision of relevant information for decision makers.