Explain the major characteristics of modern businesses that necessitate the introduction of a strategic cost management system.

CPA-Advanced-Management-Accounting-Section-5

Characteristics of modern business that necessitate the information of a strategic cost management system are:

i. Changing strategies
ii. International customers
iii. International competitors
iv. Greater product variety
v. Higher selling costs
vi. Shorter product life cycle
vii. Higher design costs
Note:
Each of these points should be explained.

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