$9-32$Variable costing is more likely to lead to undesirable buildups of inventory levels because fixed manufacturing overhead costs are expensed immediately rather than being allocated to inventory. This reduces the incentive to produce more to absorb fixed overhead costs. Managers can counteract undesirable inventory buildups by closely monitoring production levels, adjusting production schedules to match demand, implementing just$-$in$-$time inventory systems, and regularly reviewing and adjusting pricing strategies to stimulate demand. Additionally, they can focus on reducing fixed manufacturing overhead costs through efficiency improvements or renegotiating supplier contracts.