The paper aims to explore the role of using activity-based resource planning (ABRP) as a contemporary accounting technique in developing the performance of the economic unit compared to traditional cost methods. It also aims to determine the role of ABRP in rationalizing the preparation of operating budgets while exploring its effectiveness. The case study method was employed to analyze the data of the Middle Refineries Company (Dura Refinery—Samawah—Najaf—Diwaniyah—Karbala) in Baghdad for the year 2019. This analysis involved conducting field and personal interviews with department managers and employees. The study aimed to implement the ABRP technique and demonstrate its influence on streamlining the process of creating operating budgets for the economic unit that served as the research sample. Implementing the ABRP system enables the provision of information that aids in the planning process by creating a budget based on ABC activities that prioritize customer requirements, analyze their needs, and align them with strategic objectives. Additionally, it considers resource consumption, which depends on the economic unit's resources. The proportion of idle energy indicated the use of resources in the economic unit of the study sample. This paper discusses the implementation of ABRP for Operating Budgeting in Oil Activities, focusing on achieving cost-effectiveness within the budget to meet workload expectations and strategic objectives. It emphasizes the shift from traditional Operating Budgeting to activity-based budgeting, necessitating changes in budgeting methods to adapt to the evolving management principles and competitive conditions in the oil industry.