Question

Deficiencies of the traditional cost accounting information system include all of the following except?

Answer 1

Deficiencies of the traditional cost accounting information system may include lack of accuracy, timeliness, and relevance. However, they do not include promoting unethical behavior.

Step-by-step explanation:

Deficiencies of the traditional cost accounting information system may include:

1. Lack of accuracy: Traditional cost accounting systems may not accurately capture all costs associated with a product or service. For example, they may not account for indirect costs such as overhead expenses and not allocate them properly.
2. Lack of timeliness: Traditional systems rely on historical data and may not provide real-time information for decision-making.
3. Lack of relevance: Traditional systems may not provide information that is relevant or useful for decision-making. For example, they may focus on cost allocation rather than strategic cost management.

However, the deficiencies of traditional cost accounting information system do NOT include:

1. Promoting unethical behavior: Traditional systems do not promote or encourage unethical behavior. Ethical behavior depends on the individuals and the control mechanisms in place within an organization.