Traditional cost accounting recently has been the object of extensive criticism because of its inadequate representation of manufacturing costs. New accounting approaches are being proposed and tested that will improve the information provided to managers in both industry and government. These new approaches will lead to evolutionary changes in the data and methodologies used by cost analysts. This paper describes the evolution in manufacturing processes, accounting systems, and cost estimating. Recommendations on how to prepare for this changing environment are offered to the DoD cost estimating community.