Question

What forces have caused cost and

management accounting systems designed
decades
ago to become less relevant
and less valuable, for

employees today's globally competitive
encronment?
es in​

Answer 1

The forces were as follows :-

1. The old record keeping as well as expenditure methods were very time intensive as well as the accounting processes were not compatible with the revenue recognition processes either.

2. The sophistication of corporate processes has resulted in the development of new management accounting methods that have been incorporated in the area of digital tools which are used to generate regular, weekly , monthly and annual management reports.

3. Automation of operations has succeeded in reaching optimum potential productivity in certain fields that was not feasible in the past. The robotics control systems, operation optimization, etc. have raised the fixed cost share of the operating cost and the flexible budget has become a very minute share of the overall expenses of the investment.