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Financial risk is associated with changes in
Overproduction
Overproduction occurs when more goods are produced than are demanded by the market, often leading to excess inventory and wastage of resources.
Lost Sales
Revenue that was not earned due to an inability to meet customer demand or because the customer chose a competitor's product.
Customer Dissatisfaction
Negative feelings or a state of disappointment experienced by customers when products or services fail to meet their expectations.
Absorption Costing Income
The profit figure calculated under absorption costing, including all costs of production – both fixed and variable – in product costs, affecting reported income.
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