what can be done to overcome the problem of over-production created by a costing system. – Essaylink
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Free Inquiry(a) Certain types of costing system encourage operational managers to produce in excess
of both budget and demand.
Requirement
Discuss the statement made above. Your answer should cover the following areas:
● the types of costing system that encourage this behaviour;
● how these costing systems encourage over-production;
● what can be done to overcome the problem of over-production created by a costing system.
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