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

Question

Quizplus · Accepted Answer

Traditional methods of cost accounting may be inappropriate in today's business environment, which is characterized by increased competition, rapid technological changes, and the need for firms to be flexible and responsive to customer demands. Traditional cost accounting methods do not take into account the complexity and uncertainty of modern business operations and may not provide accurate information for decision making. Many companies have shifted to more sophisticated methods such as activity-based costing (ABC) and lean accounting to better understand their costs and improve their competitiveness.

Traditional Methods of Cost Accounting