【正文】 k Meredith[1] states “high technology, bined with robots, puters, and automated machinery, seems to finally allow the longhopedfor production wonders of virtually individual product customization, immediate response to demand, high quality, and outstanding performance,all at minimal cost”. To some extent, statements like this are supported by facts. For example, Ingersoll engineers report that firms implementing FMS, on an average,enjoy a 40 per cent reduction in production time, a 30 percent reduction in production workers, and a 12 per cent reduction in cost per piece, in addition to an increase of 30 percent in machine utilization[2]. However, adopting flexible automation like FMS is not without problems. Often FMS creates new information needs and demands a modified approach to collecting modified approaches often conflict with existing management practices. An example of this would be accounting practices. Several articles point out the limitations of traditional cost measurements in the current technological environment. After briefly explaining FMS, this article examines how FMS creates new information needs within an anization and how the accounting information system can address some of these needs and help management function effectively in the new manufacturing environment. Flexible automation Flexible manufacturing automation can be implemented both in processtype and assemblytype manufacturing industries. Flexible automation involves, in varying degrees,puterizing the manufacturing operation through putercontrol systems such as industrial robots,numerical control machines, and grouped machine centres(MC) controlled by a central puter. Process automation is more mon in chemical and other processing industries while assembly automation is more mon in automobile and other job extent of flexible automation may vary from a few numerical control machines to automating the entire assembly line. The basic ponent of FMS is numerically controlled machine tooling. The machine tools are run and controlled by a puter. The software instructions from the puter control and direct tool movement, cutting speed, movement of parts and inventory, and many other operations normally controlled by an operator in a traditional manufacturing operation. The software conveys instructions to different machines following a predetermined scheduling minimal manual handling of materials and jobs is , the puter collects data on items such as process time, number of units produced and inventory usage, that is useful for planning, scheduling, and monitoring production. The programmable nature of FMS enhances the operations of the firm’s existing electrical,electronic and mechanical systems by bining several operations and by reducing time and human error[3]. Unlike a traditional job shop, an FMS job shop requires fewer operators. The operating staff consists mainly of load/unload operators, tool setters and setup operators. Other supporting staff include puter operators, programmers, system analysts, and maintenance technicians. New information needs In the USA, flexible automation, like FMS, gained importance because it allowed anizations to achieve the twin objectives of efficiency and quality. FMS provides anizations with the ability to introduce new product lines (at a reasonable cost), a wider product range, improve product quality with no rejects or defects and control inefficiencies in production (see Table I for a profile of FMS).With proper planning, FMS anizations can reduce inventory levels and save space, insurance and storage costs. At the same time, they can improve quality because of faster feedback loops and improved overview of products and processes[5].However, FMS does not ensure automatic success. Success results only when the anization makes suitable changes in its anizational setup, particularly its information system. The need to reanize the information system is important for two reasons. First, the moary investment in FMS is significant. H