Traditional cost accounting
A) is still appropriate today.
B) may be inappropriate today.
C) is based on updated methods.
D) may not be appropriate for rigid hierarchical organizations.
E) is reflective in accounting ledgers.

Question

Quizplus · Accepted Answer

Traditional cost accounting may be inappropriate today because it often focuses only on direct costs and does not consider indirect costs, such as overhead and other hidden expenses. Additionally, it may not accurately reflect the true cost of goods or services in today's complex and global business environment. Therefore, alternative methods such as activity-based costing (ABC) or lean accounting have become more widely used in recent years.

Traditional Cost Accounting