Traditional methods of cost accounting tend to be inappropriate in today's business environment because they are based on outdated methods of rigid hierarchical organization.

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Today's business environment is characterized by flatter organizational structures and dynamic, complex operations that require more flexible and sophisticated methods of cost accounting. Traditional methods of cost accounting, which rely on fixed overhead allocations and volume-based cost drivers, cannot adequately capture the true costs of activities in such an environment. Activity-based costing (ABC) and other modern approaches to cost accounting are therefore preferred.

Traditional Methods of Cost Accounting Tend to Be Inappropriate in Today's