“Businesses can defend spending once they’ve identified that differentiation in a product line will set them apart from their competition. This would result in a higher cost product with different or added features. So, you’re going to spend more on product costing, but your defense is that you can charge a premium price for your higher-end product. The key metrics would be: What is my return on investment in higher production costs compared to increased expected revenues? Is this product going to prove a consistent difference in the market to influence buying decisions?“
I have been doing bookkeeping and accounting for 12 years. I have previous experience in public Accounting, Tax, Payroll and Payroll taxes, Bank Accounting, Real Estate Accounting, and E-Commerce Re-sellers. I am Quickbooks Online Certified ProAdvisor.
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Christopher B. Campbell Bookkeeping, LLC 