a more effective cost management, system management cannot truly compete against otthe organizations.the final concem from traditional cost systems is failure to penetrale beyond a gross margin analysis. many companies jgnore the costs of gencral sales and administrativs (e.g.marketing, distribution, or administrative) in the calculation of a product,s costs. this
failure stems from the fact that tdhere is no requirement to include thsts from a financial accounnting perspective.by ignoring these costs, managers do not recognize the total costs of a product. companies that hire teaveling salespeople to sell their peoducts will accumulate more costs for each unit sold than products sold through brick and mortar storer and catalogds although there is a difference in the amount of costs.there will be no recognition in the cost