LG Electronics Corporation shows an upward trend in production of washing machines on a large scale to cater the demand of consumers at large. After some period of time the sales of washing machines shows on downward trend due to cut - throat competition in the market. Therefore sales manager. hold series of discussions with production manager and the result of that discussion to reduce production to a certain level and to take austerity measures in curtailing cost of production.
(a) Why production manager reduced the production of washing machines and what will be the consequence if production increases?
(b) What type of accounting is required to be implemented in LG Electronics Corporation to improve the administration of the company?
