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Business strategy
Causes of increased cost of production.
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[QUOTE="TOZZIBLINKZ, post: 278563, member: 37528"] A lot of things can happen inside a business organisation, when cost of production in goods and services increases. It is always advised for a business owner to maintain normal and original cost when making in availability goods and services for sale and rendering, but to some extent a business owners efforts to maintain relative and normal cost of producing goods and services production can be thwarted by economic factors. Hence, that's takes us to the two main causes of increased cost of production. Business cause and economic cause. Let's consider them briefly. [B]Business cause:[/B] indeed the business itself might be the problem why it may be facing the problem of increased cost of production. When business owners do not observe the reason to prepare a budget when trying to restock the business with new inventories and stocks, the business may be involved in resources wastage, and that in turn makes the cost of making goods and services available to accumulate into a huge unbearable price or cost possibly at the end of a year or month. [B]Economic cause:[/B] the economy in which a particular business finds itself may totally be the cause why it spends a lot in making goods and services available for sale and for rendering to customers and clients. An economy presently facing societal problems like, recession and inflation can totally have a drastic and negative effects on business established within it. Inflation especially, makes prices of goods and services to be unbearable for buyers and purchasers, and that is possibly as a result of the cost of production of these goods and services being on an increased rate. [/QUOTE]
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