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What is Death spiral

What is Death spiral? Is it related to cost accounting. Illustrate it.

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Death spiral word is taken from cost accounting. It is bad situation of company whenever company's sale reduces rapidly. At that time, when company rises price, then again sale will reduce. When company does not raise prices, then total cost will very high. Means do or not to do will be death spiral for the business. This is as well limitation of marginal costing since only average or marginal cost can be decreased at the time of reducing of sale however fixed cost will fix. After a limit, company has to raise prices to attain similar margin. However it has its own side-effect and sale might reduce.

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