Asked by Samantha Sciutto on Jun 25, 2024
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The biggest problems with producing too much are lost sales and customer dissatisfaction.
Overproduction
Overproduction occurs when more goods are produced than are demanded by the market, often leading to excess inventory and wastage of resources.
Lost Sales
Revenue that was not earned due to an inability to meet customer demand or because the customer chose a competitor's product.
Customer Dissatisfaction
Negative feelings or a state of disappointment experienced by customers when products or services fail to meet their expectations.
- Acquire knowledge on the relationship between production capacities and financial outcomes under both costing strategies.
Verified Answer
Learning Objectives
- Acquire knowledge on the relationship between production capacities and financial outcomes under both costing strategies.
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