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Undesired or unplanned inventory accumulation is likely to occur when
Transfer Price
The price at which goods and services are sold between divisions within the same company or among affiliated companies.
Contribution Margin
The amount by which a product's sales revenue exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.
Production Capacity
The maximum amount of goods or services that can be produced in a given period under normal working conditions.
Lost Contribution Margin
The amount of contribution margin that is not realized due to not selling a product or service, often calculated as the sales price minus variable costs for the unsold units.
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