Brown's, a local bakery, is worried about increased costs particularly energy. Last year's records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional Brown's, a local bakery, is worried about increased costs particularly energy. Last year's records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional

The increase in costs can have a serious impact on the competitiveness and profitability of a company. The increase in costs during the development of a new product can impact the successful launch of the same. An increase in supply chain costs for an existing product forces a manufacturer to raise prices and lose the advantage of competitiveness or reduce the profit margin to maintain price levels.

Explanation:

The increase in costs may be due to internal factors such as low productivity or an increase in labor costs, or external factors such as increased costs of raw materials, components, transportation, etc. Poor cost management is an underlying cause of the rising costs. Companies also take risks if they do not continuously monitor their costs so that they remain in line with the original estimates.