Manufacturing And Service: Competitive Advantage

Manufacturing and Service Evaluate costing implies the operation brought on by a company to ensure quality products are dispatched to consumers. Winning strategies are based on sustainable competitive advantage (Porter, 2008). A corporation has a competitive advantage whenever it has the edge over its competitors in safeguarding clients and protecting them against their rivals. A company incurs appraisal costs to detect defective inventory before they are distributed to customers. These costs help the company from losing customers due to default products, which possibly could mean them purchasing products from another company. The company is likely to incur marketing cost in an attempt to attract the customers, which leads to a subsequent decrease in profits (Evans, 2002). A company incurs costs while inspecting work-in-progress materials, cost of supplies to carry out the inspection, inventory destroyed as part of the testing process, and personnel involved in inspection procedures. The costing and financial strategies are unique for every manufacturing and service company. Manufacturing companies use a cost-based strategy for pricing goods and services offered in the market. For example, increased competition in the banking in...