The Contingency Theory of Management Accounting posits that there is no single universally acceptable management accounting system suitable for all organizations or consistently effective within an organization across all situations. Instead, accounting systems must adapt to prevailing circumstances, such as shifts in the environment, competition, organizational structures, and technology.
A flexible manufacturing system (FMS) is an automated production line that can be quickly adapted to produce multiple product lines, enabling companies to lower costs and respond swiftly to changes in consumer demand.
