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 Inputs
Real World
Apple adds value to aluminium, glass, and silicon components worth a fraction of the price by combining them into an iPhone with premium design, software, and brand prestige — allowing it to charge over £1,000.
Exam Focus
When asked to 'explain' how a business adds value, always link the method to a specific benefit — higher price or competitive advantage.
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