Question

What forces have caused cost and management accounting systems designed decades ago to become less relevant and less valuable for organizational employees in today’s globally competitive environment?

Answer 1

*Any doubt please comment

Forces that haved aused cost and management accounting systems designed decades ago to become less relevant and less valuable for organizational employees in today’s globally competitive environment :

1. The knowledge base is insufficient and does not comprehensively all the costing requirements of today's manufacturing environment. Also , there is no standard definition for cost management.

2. Most cost systems have become automated and the costing methods designed such as standard costing do not find any use in today's world.

3. The increasing complexity of manufacturing processes and traditional costing systems make it difficult to identify appropriate cost drivers.

4. Rapid changes in internal and external environment which have challenged the traditional cost management systems.