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Why is the traditional costing system considered less effective in today's competitive environment?
  • a)
    It relies on cost drivers.
  • b)
    It is based on activity consumption.
  • c)
    It was designed for mass production.
  • d)
    It provides an accurate picture of manufacturing efficiency.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why is the traditional costing system considered less effective in tod...
The traditional costing system was designed for mass production, which is different from today's competitive environment where companies produce a wide variety of products with different cost structures. Hence, it is considered less effective.
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Why is the traditional costing system considered less effective in today's competitive environment?a)It relies on cost drivers.b)It is based on activity consumption.c)It was designed for mass production.d)It provides an accurate picture of manufacturing efficiency.Correct answer is option 'C'. Can you explain this answer?
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