Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 13 50 2026 07 01 Validation and Performance Evaluation of Cost Measurement in the Petrochemical Industry 203 218 24484 10.22034/ijfma.2026.79202.2368 EN Asgar Askari PhD Candidate in Finance, Department of Accounting and Finance, South Tehran Branch, Islamic Azad University, Tehran, Iran Seyyedeh Mahboobeh Jafari Department of Accounting and Finance, South Tehran Branch, Islamic Azad University, Tehran, Iran Nourouz Norollahzadeh Department of Accounting and Finance, South Tehran Branch, Islamic Azad University, Tehran, Iran Reza Mansourian Department of Accounting and Finance, South Tehran Branch, Islamic Azad University, Tehran, Iran 0000-0002-2058-8409 Journal Article 2026 04 13 This study was conducted with the aim of developing and validating the Integrated Costing–Forecasting–Analysis Model (ICCPM), a framework that simultaneously addresses the three core tasks of industrial management: accurate cost calculation, forecasting future changes, and agile analysis of cost responsiveness to environmental variables. In this model, activity based costing was designed using actual cost drivers, and the results demonstrated a significant improvement in cost calculation accuracy compared to traditional methods. The statistical population of this study covers the period from 2019 to 2024<br>For the forecasting component, two approaches—multiple regression and random forest—were employed. The substantial reduction in error metrics such as MAE, RMSE, and MAPE confirmed the efficiency and robustness of these models.<br>To analyze the impact of environmental changes, a set of scenarios (S0 to S8) was developed. Findings revealed that feedstock price is the most influential cost driver, generating the highest level of cost fluctuation. Furthermore, agility indicators showed that ICCPM’s technological infrastructure and integrated data flow led to a noticeable decrease in execution time and enhanced model responsiveness in dynamic conditions.<br>Additionally, operational mechanisms—including energy consumption forecasting, a MILP-based optimization model, and the DRAO mechanism—facilitated the practical implementation of ICCPM in real-world environments.<br>Overall, the results indicate that ICCPM provides a comprehensive and reliable framework for cost management, forward looking planning, and rapid decision making in process industries and volatile environments, delivering an accurate, dynamic, and trustworthy representation of cost behavior. http://www.ijfma.ir/article_24484_49484cfa10b250f569a5a1774fa8b312.pdf