Adding Value
The process of increasing the worth or usefulness of a product or service beyond its basic function, allowing businesses...
Formula
Added Value = Selling Price − Cost of Bought-in Materials
Real World
Starbucks buys coffee beans for pennies per cup but sells a latte for £4.50 — the added value comes from barista skill, store ambience, branding, and convenience rather than the raw ingredient cost.
Exam Focus
State the formula and a specific method of adding value; vague answers about 'making it better' will not score application marks.
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