In earlier times,when organisations produced a limited variety of products and indirect costs were a relatively small percentage of total costs,managers found that traditional costing systems were reasonably accurate and both easy and inexpensive to use.

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Traditional costing systems were designed for simpler production processes and were accurate for organisations with limited ranges of products and low indirect costs. They were also cost-effective and easy to use for managers.

In Earlier Times,when Organisations Produced a Limited Variety of Products