Traditional management accounting system were used to suit traditional manufacturing system. it uses broad arbitrary percentages to allocate costs including overhead costs. these costs are typically calculated by dividing fixed cost by units produced. this ignores the actual fis cost impact of individual product families. TMA is not suitable for modern companies that have a wide range of low volume products, since it almost certainly leads to distorted cost information. Modern costing methods aim not only to accurately allocate overhead cost, but also to identify areas of waste. To address the new manufacturing environment needs, new management accounting systems introduced such as ABC Target Costing and Balanced Score-card .
provide your views giving numerical examples of applying the three systems
Required :2500 – 3000 words
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