Added value Flashcards
1
Q
Added value AO1
A
The increase in worth of product or service as a result of activity undertaken by the business.
Done during production process.
2
Q
Ways to add value
A
- Branding e.g. establish a recognised name
- Convenience e.g. making product in various sizes
- Quality e.g. by making a better product
- Deign e.g. the look, feel, features of a product
- USP e.g. by offering something different
- Purchasing cheaper raw materials – Must makes sure quality is not compromised.
- Raising price of product
3
Q
Calculation for adding value
A
selling price of product - cost of inputs
