Explain how overproduction and underproduction can affect cost, writing homework help

Question Description

Critical Thinking Questions for Chapter 6

  • Explain how overproduction and underproduction can affect cost.
  • What are two ways to control quantity demand?
  • Why is the setup of a recipe so important to the foodservice industry?
  • Why is the ingredient room so important to the foodservice industry and what goes on in the ingredient room?
  • What are the sources of energy the food service uses?
  • Why is it important to use energy conservation in the foodservice industry?
  • Describe how to create a well-executed energy management plan?
  • ENERGY STAR has a voluntary partnership among US organizations, i.e., with the US Environmental Protection Agency (EPA) and the US Department of Energy. What does their partnership entail?
  • PLEASE ANSWER THESE 8 Question above

Final Answer

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Critical Thinking Questions for Chapter 6
Institutional Affiliation




Overproduction refers to the manufacturing of produce or a service in its excess form.
Underproduction, on the other hand, refers to the opposite of overproduction: meaning that the
produce is manufactured in less required quantity. In the financial side, overproduction, over
stock, refers to the supplying of stock more than the demand of the same in the given market
(Veblen, 2002).
The over or under production of stuff may have a direct or indirect impact on costs. For
instance, when a firm is involved in the overproduction of its products, the resulting superfluity
will eventually lead to the lowering of values perhaps of unsold goods. This will in return drive
to cost of trading which includes the value of effort leading to a drastic increase in cost. In
overproduction, the supply would be more than the demand hence low costs of the product. In
underproduction, the outcome is that there is an in the availability of some substances in the set
menu. Now in most cases, when a customer visits the firm to do a purchase and finds that's the
desired commodity is not available, chances of he/she returning again are very minimal. This
will, in turn, lead to low profits after the company deducts all its overheads such as the
operational costs. When a company manufactures ...

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Carnegie Mellon University

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