Resource Consumption Accounting

Resource Consumption Accounting (RCA) is a management accounting method that focuses on how resources—like time, materials, and labor—are used within an organization. Unlike traditional accounting, which often prioritizes financial figures, RCA connects costs to the actual consumption of resources. This approach helps businesses identify inefficiencies, improve decision-making, and enhance profitability by providing a clearer picture of where resources are spent and how they contribute to value creation. By understanding resource usage better, organizations can optimize their operations and align their strategies with actual performance.