The Relationship between Source Consumption Accounting and Capital Elements, an Example of a Business Application

Abstract

Objective – This study aims to examine the relationship between Resource Consumption Accounting (RCA), a strategic management accounting tool, and capital elements. The primary objective is to reveal the effects of the data provided by RCA on financial and human capital in the corporate value creation process, using the example of a spare parts manufacturing company.

Design/Method/Approach – The case study method was adopted in this study, and a spare parts manufacturing company was examined. As an approach, the RCA model was applied, which, unlike traditional costing methods, distributes costs based on the principle of causality and details capacity utilisation.

Findings – Approximately 22% of idle capacity, which was hidden within product costs using traditional methods, was separated and made visible through the application of RCA. It was determined that the correct distribution of costs prevented unnecessary investments in capital preservation, thereby protecting financial capital and increasing profitability. In human resource transformation, it was seen that the workforce is not just an expense item but a manageable resource pool that can be planned efficiently.

Discussion – The findings show that RCA is not just a cost calculation tool but also provides a strategic basis for the effective management of financial and human capital, which are key components of Integrated Reporting. Making idle capacity visible provides a critical decision support mechanism for management in preventing resource waste and supporting the process of creating corporate value.