Using the SOF method to evaluate hidden costs : a field study on a sample of industrial companies in the Sulaymaniyah governorate

الملخص EN

The objective of this study is to understand the construction of hidden costs and their causes that result in operating losses in industrial companies, In addition to its indicators and to show the mechanisms that companies put in place to control them, as well as explain measurement and evaluation through the SOF model, which consists of three measures: social, organizational and financial.

This is based on the inductive approach when conducting the field study through a questionnaire, and it was distributed to 50 employees of industrial companies operating in the city of Sulaymaniyah.

The results of the study show that there are hidden costs in these studied companies, consisting of multiple dysfunctions and in return, there are no mechanisms to control them.

Among the most important recommendations is to work on adopting methods for measuring hidden costs using the SOF scale model in evaluating hidden costs.

In addition to the need to control it by paying attention to the human element, which will reflect positively on improving the company's performance, which is considered a strategic approach to reducing costs.