If a company's actual results for revenues, net profits, eps, and roe turn out to be worse than projected, then it is usually because
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Manager has over-estimated the projected value if the company results are worse than projected.
Explanation:
It will directly affect the production capacity. False competitive assumptions will make false prediction of the project and it will lead to huge loss for the organization. Sales and revenue will have false entry in the books of accounts.
Profit will be below average and it will adversely affect the creditability of the company. Work will be duplicated and outcome will be nil. Expense will be reduced and profit will be decreased drastically.
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