With the increase in competition over the past several years and the need for additional accuracy in product costing, traditional cost accounting systems have become less common in product costing because

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Traditional cost accounting systems rely heavily on volume-based cost drivers, such as direct labor hours or machine hours, to allocate indirect costs to products. However, with the increase in competition and the need for more accurate product costing, companies are shifting towards more sophisticated cost accounting systems that use structural or executional cost drivers, and measure the actual consumption of resources by each product. This allows for more accurate measurement of costs and helps companies make better decisions about product pricing, profitability, and resource allocation.

With the Increase in Competition Over the Past Several Years