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In an era of just-in-time manufacturing, we see the benefits of producing only what is needed, when it is needed. Yet, many managers are motivated
In an era of just-in-time manufacturing, we see the benefits of producing only what is needed, when it is needed. Yet, many managers are motivated to produce at capacity because it has a positive effect on reported gross margin. Using notions such as fixed costs per unit, and other management accounting concepts, explain this apparent paradox. What is the actual best approach? How might senior management motivate employees to behave in a manner that is consistent with best practices?
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