Advantages and disadvantages of traditional costing systems?

Answer 1

The advantage of current cost accounting is that it addresses the difference between the current and historical costs as a result of the inflation. The disadvantage is that it presents the challenges to the users and companies about the reported financial information.

Answer 2

The advantages include: it aligns with Generally Accepted Accounting Principles, and easy to implement for companies that have one product. The disadvantages include: it is outdated because today companies use computers and machines for production, cost is not appropriately assigned because it uses direct labor hours to calculate cost and can result in bad decision making since it excludes some non-manufacturing costs.