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The traditional classification of records is based on their physical format or content. The new classification system is based on the function or purpose of the records.

The new system is better because it allows for easier retrieval and management of records based on their intended use. It consists of three levels.

The first level is the broadest category, such as administrative records. The second level is a more specific subcategory, such as financial records. The third level is the most specific, such as payroll records.