For a differentiation strategy to maintain a company's strategic situation and increase its competitive advantage an increase in value creation much surpass the increase in costs.
<h3>How does a differentiation strategy benefit in gaining a competitive advantage?</h3>
Differentiation gives a party two advantages:
-It can allow the firm to charge a premium price for its good or service, should it choose to do so.
-It can help the firm to grow overall need and capture market share from its rival.
A generic strategy attempts to convince clients to pay a premium price for its good or services by supplying unique and desirable features. Using a differentiation strategy suggests that a firm is contesting based on uniqueness, rather than price.
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Answer:
had a wide application into field of science and technology.
Answer:
Credit balance of $12,000
Explanation:
To calculate the balance of the allowance for doubtful accounts we need to multiply the total accounts receivable times the percentage of estimated bad debts:
$160,000 x 7.5% = $12,000
Since allowance for doubtful accounts is a contra asset account, when it increases it should be credited.
Answer:
The answer is: Duncan's materials costs per unit was $1.50 ($6.10 - $4.60) less than Davis's materials costs per unit.
Explanation:
We must first calculate the materials costs for both companies:
- Duncan's total costs was $457,250 minus conversion costs of $279,000 equals total materials costs of $178,250.
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Davis's total costs was $721,056 minus conversion costs of $381,408 equals total materials costs of $339,648
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Now we calculate the materials costs per unit produced:
- Duncan's total materials costs $178,250 divided by 38,750 units equals $4.60 per unit.
- Davis's total materials costs $339,648 divided by 55,680 units equals $6.10 per unit.
So Duncan's materials costs per unit was $1.50 ($6.10 - $4.60) less than Davis's materials costs per unit.
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