This study analyzed the impact of the degree of production automation through advanced manufacturing technology on the achievement of firms' strategic objectives (competitive capabilities) when firms adopt and utilize advanced manufacturing technology to pursue competitive advantage in response to rapidly changing competitive environments. Additionally, to examine the degree of inadequacy of traditional cost/management accounting systems under advanced manufacturing technology environments, this study empirically analyzed the relationships between the degree of production automation, production process types, and the perceived inadequacy of cost/management accounting systems among Korean manufacturing firms. The results indicate that while the degree of production automation in Korean manufacturing firms is still low, firms are generally experiencing the benefits of automation. However, the degree of production automation and the perceived inadequacy of cost/management accounting systems do not appear to be strongly associated, whereas the perceived inadequacy of accounting systems was found to differ according to different production process types.