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marin [14]
2 years ago
15

Cost accounting logic can lead managers to keep their resources busy all the time, increasing productivity with no regard to dem

and. what is the negative result from this effect?
Business
1 answer:
Vinil7 [7]2 years ago
6 0

The negative result from this effect is purchases of surplus inventory.

Production must be done in accordance with the demand. Otherwise, there will be an increase in surplus inventory handling expenses and overproduction.

"Surplus inventory" refers to a situation where less inventory is consumed than what is stocked, which impacts the profit margin and locks up money that could have been better employed to offer other saleable products.

The internal management team of a corporation uses cost accounting to determine all variable and fixed expenses related to the production process. To help with measuring financial performance and making future business decisions, it will first measure and record each of these charges individually.

To learn more about cost accounting, refer this link.

brainly.com/question/24516871

#SPJ4

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