<![CDATA[General Background: Industrial manufacturing processes are increasingly challenged by rising resource costs and growing environmental responsibilities regarding production waste. Specific Background: Conventional costing systems typically fail to trace or report the specific costs of losses and non-productive material flows separately. Knowledge Gap: Detailed empirical tracking of physical material and energy movements across successive textile manufacturing stages using standardized environmental accounting remains limited. Aims: This study aims to examine the role of Material Flow Cost Accounting (MFCA) in identifying loss costs and evaluating potential reductions to promote product sustainability. Results: Applying MFCA revealed that loss costs accounted for 3.288% of total material flow costs, and proposed improvements could reduce these costs by approximately 15.46% while raising the material utilization rate to 91.791%. Novelty: The implementation of ISO 14051-based material flow cost accounting within the Iraqi textile and leather sector specifically pinpoints distinct production stage loss burdens. Implications: Manufacturing enterprises can systematically optimize resource efficiency and strengthen both economic and environmental dimensions of product sustainability by utilizing MFCA data. Key Findings Highlights Material flow cost accounting successfully isolates and reveals non-productive loss costs separately from conforming finished product expenses. Cutting and knitting stages exhibit significant loss quantities and financial burdens that require prioritized corrective action. Proposed optimization measures can significantly decrease overall loss rates while simultaneously improving material utilization efficiency and economic performance. Keywords Material Flow Cost Accounting, Loss Costs, Negative Product, Cost Reduction, Product Sustainability]]>
