The research addressed the use of the impact of the Time-Driven Activity-Based Costing (TDABC) in improving financial performance of a sample of industrial units in the Kurdistan Regional of Iraq. As the research problem was the possible application of the (TDABC) in industrial units in the Kurdistan Regional and their contribution to reducing production costs, increasing resource efficiency in production and rationalizing pricing decisions to improve financial performance due to dramatic changes in economic systems. Traditional cost systems have not kept pace with developments in the business environment because of its inability to compete and improve financial performance. The research aimed to identify the concept, importance and objectives of TDABC, highlight them in reducing costs and their impact on the performance of economic units, measure the correlation between TDABC and improve financial performance. The research concluded a set of findings, the most important of which was the main result through a set of sub-findings, namely, the impact of TDABC on the relevance, correlation and impact of improving financial performance. Finally, the study has recommended several recommendations, the most important of which was the need to identify the benefits of the application of the TDABC in improving financial performance. The need for industrial economic units in Kurdistan-Iraq Regional to take care of the development of their cost systems in order to reach the delivery of products of high value and more accurately in the modern business environment.