Accounting assignment Example | Topics and Well Written Essays - 1000 words

Accounting - Assignment Example any can achieve this strategy by charging Priority, Team, and Shop different prices and at the same time, these respective customers selling to different purchasers. A business that sells to different places with different cost differentiating their products from their competitors through use of trademarks or advertising. This will allow customers to be associate of distribution in different packaging is capable to monopolize the market. This promotes brand loyalty among your customers. Brand loyalty is a significant asset as it upholds a company against the threat of competitors. Price differentiation will also encourages innovation, it is very important for Duncan Shirt Company to set itself apart from the rivals through a transformational innovation to explore the market further and come up with a new product. This will also focuses on improving the existing products. Innovation gives benefits to both stakeholders and customers by reinvigorating goods, improving fabrication processes will offer promising economies of scale. Differentiation will create a barrier to entry for new investors in the market because the customers will have associated the existing product. A company who also offer a distinct product would be doing advertising to make it popular in the public eye, thus making it very difficult for new entries companies by restricting them since they lack capital to advertise effectively. However, this cost should be reflected on the products through charging high profit margins. Moreover tastes of customers do change with time and competitors are o ut to copy and imitate flourishing differentiators. For this reason, product differentiation should offer something which the customer value for long term sustainment. Generally, an extreme usage of materials is the main cause of unfavorable direct materials quantity variance. Form the data give positive (annex) which is very favorable to the company. This may be due to substandard quality of materials,  or