Prior to the Industrial Revolution, single-product industries and high labour costs were the norm. After the Industrial Revolution, business changed dramatically. Single-product manufacturing companies that relied on human labour were replaced with multiproduct companies that relied on automated processes. Accounting methods also had to change. For instance, budgeting became very important as a control mechanism in decentralized departments.

You could say that today we are experiencing a new type of revolution—the Information Age—and that accounting techniques and practices must also change to reflect this new business environment. Summarize some of the key changes in business practices that have occurred due to the Information Age. What changes to accounting practices have been made or need to be made to support these changes?