Transforming resources into goods and services Flashcards
1
Q
What is input?
A
Something that contributes to the production of a product or service.
2
Q
What is output?
A
Something that occurs as a result of the transformation of a business input.
3
Q
What is added value?
A
The difference in value between the price of the finished product and the cost of materials used.
4
Q
Ways of adding value
A
Advertising
Branding
Location
Personal service
5
Q
Benefits of adding value
A
Different from the competition
Charing a higher price
Higher profit margins
Targeting product or service at a different market segment.
