Define the term 'added value'.

Added value is the difference between the costs of purchasing raw materials and the price the finished goods are sold at. Value is added to a good at each stage of production from raw material to the finished good.

HZ

Related Business Studies A Level answers

All answers ▸

How should I prepare for my AS business exam


Assess two factors that would affect demand for a 'staycation' in the UK (8 marks)


What is Opportunity Cost?


The directors of a well-known food manufacturing PLC have announced that they are moving production from the UK to Europe in order to reduce costs. This will result in the loss of 115 jobs. To what extent is this decision likely to benefit the business’