Summarize the main points in the article

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Reference no: EM132838516

Question - Read this article "Why the Big Three Put Too Many Cars on the Lot" answer these questions-

1. Summarize the main points in the article.

2. In the second paragraph, the authors say "To boost profits and short-term incentives..." Explain how the actions of the automakers could or would or were intended to "boost profits and short-term incentives."

3. The authors indicate that the practices the automakers were using were effective in the short-term, but were costly in the long-term. The authors give a few reasons why cost might accelerate in the longer term. Based on own understanding of inventories and the costs of hold inventories, indicate some other "hidden" costs the companies might incur as a result of overproducing their inventories.

4. In the paragraphs in "The Central Lesson" section, the authors discuss some of the problems associated with producing to capacity and absorption costing. Read those paragraphs and discuss why producing to capacity might be particularly costly for companies, like automakers, who produce yearly models.

Reference no: EM132838516

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