Analysis of reducing unused energy costs by leveraging ABC and TABC methods for sustainable operations

Abstract

This study aims to investigate the efficacy of sophisticated cost-controlling techniques in supporting rural social ventures in becoming more sustainable and conserving energy in rural settings. Specifically, its overall purpose is to investigate through which avenues rural, resource-constrained ventures can maximize energy efficiency, enhance operational effectiveness, and become long-term sustainable with activity-based costing (ABC) and time-driven activity-based costing (TABC). A mixed-methods approach was employed, combining quantitative analysis through survey data collected from 400 respondents using partial least square structural equation modeling (PLS-SEM) and qualitative insights from interviews with rural entrepreneurs and operational managers. The findings indicate that these cost-management techniques enable businesses to precisely allocate energy costs to specific operations, significantly reducing energy waste while identifying inefficiencies and facilitating informed decision-making. From a theoretical viewpoint, this work extends cost-accounting frameworks through the incorporation of energy efficiency in studies of sustainability. In practice, it underlines the necessity for improvement in rural businesses' technical capabilities in terms of embracing such methodologies. What can be gained through such a study is useful information for policymakers and practitioners in terms of driving sustainable approaches in rural economies, proving that ABC and TABC can act as important tools in attaining both financial and environmental performance.