what can be done to overcome the problem of over-production created by a costing system.
(a) Certain types of costing system encourage operational managers to produce in excess
of both budget and demand.
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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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