Adding Value
- Created by: Sumtimesadness
- Created on: 16-02-14 19:12
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- Adding Value
- adding value is the process of transformation of inputs into outputs
- Measured by the difference is the price of the finished product and the cost of the raw materials
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- Transformation process is through branding, advertising, product features, location and personal services
- Benefits of adding value is differentiation from competitors, charge a higher price, higher profit margins and target product at a different market segment
- Resources are elements that go into producing goods
- factors of production are turning in puts into outputs
- transformation process is turning raw materials in to finish goods
- Land incorpates all natural resources needed for production
- capital helps produce good and services
- entreprise brings everything together
- labour physical and mental effort involved in production
- improving efficiency is by improving fertility of the land, reduce waste, more educationa dn training, higher quality equipment and economies of scale
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