Final answer:
Technological advancements, changes in business models, and globalization have all contributed to making cost and management accounting systems designed decades ago less relevant and less valuable for organizational employees in today's globally competitive environment.
Step-by-step explanation:
In today's globally competitive environment, cost and management accounting systems designed decades ago have become less relevant and less valuable for organizational employees due to a combination of technological advancements, changes in business models, and globalization. These forces have reshaped the way organizations operate and require more real-time and accurate financial information.
Technological advancements have revolutionized the way businesses operate and collect financial data. Automation, artificial intelligence, and advanced analytics have made traditional accounting processes obsolete. For example, cloud-based accounting software allows real-time data access and collaboration, reducing the need for manual data entry and producing more accurate and timely financial information.
Changes in business models have also impacted the relevance of traditional accounting systems. The shift from manufacturing to service industries, where value is derived from intangible assets such as intellectual property and customer relationships, requires different accounting methods and performance metrics.
Globalization has increased the level of competition, as organizations now face competition from other regions and countries. This requires more sophisticated cost and management accounting systems to accurately analyze and control costs in a global market.