The Impact of Alternative Energy Cost Accounting on Improving the Financial Performance of Industrial Enterprises

Abstract

This study aimed to analyze the impact of alternative energy cost accounting on improving the financial performance of industrial enterprises. It evaluated the role of alternative energy-related cost information in measuring, analyzing, and controlling costs, as well as its reflection on reducing operating costs, improving profitability, resource efficiency, and financial stability. The study adopted a descriptive-analytical approach, targeting employees in departments and divisions related to accounting, costing, production, maintenance, auditing, planning, and energy, with a target population of 120 individuals. A questionnaire based on a five-point Likert scale was utilized, and the data were analyzed using arithmetic means, standard deviations, Pearson correlation coefficient, and regression analysis.

The results showed that the application level of alternative energy cost accounting reached a mean of 3.46 with a relative weight of 69.2%, while the improvement in financial performance reached a mean of 3.48 with a relative weight of 69.6%, indicating a positive upward trend. The results also revealed that the most prominent aspects of application were evaluating savings resulting from alternative energy and measuring its costs, whereas aspects such as evaluating economic feasibility, financial sustainability, and benchmarking were less developed. The Pearson correlation coefficient between alternative energy cost accounting and financial performance was 0.624, with a coefficient of determination (R²) of 0.389, meaning that alternative energy cost accounting explains approximately 38.9% of the variance in financial performance. The study concluded that developing alternative energy cost accounting systems can significantly contribute to reducing production costs and enhancing profitability and financial efficiency. However, achieving long-term strategic benefits requires integrating energy information into planning, control, investment evaluation, and top management decision-making