Question
If a company has a production capacity of 6000 units, but let's say they are busy during some parts of the year and have to
If a company has a production capacity of 6000 units, but let's say they are busy during some parts of the year and have to produce more units that their production capacity of 6000. What are the consequences of this from a managerial accounting perspective. For example, let's say January 1st the company has to produce 7000 units (because their busy) but their production capacity is only 6000 units. What happens to the company? What are some consequences of this? Will it affect their revenue and customer loyalty?
If you could make your answer related to managerial accounting that would help. Financial accounting works too.
Thank you
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