👉 Overproduction, in accounting terminology, refers to a situation where an organization or individual has produced more goods and services than it was originally intended to produce. This excess can be due to various factors such as demand exceeding supply, inefficient production processes, or oversupply. In finance, overproduction is often seen as a negative aspect of economic growth because it leads to inflationary pressures and higher prices for consumers and businesses alike. It also creates a surplus in the economy, which can lead to inefficiencies and