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Raj and Abdul want to increase the added value of their products - Edexcel - GCSE Business - Question 7 - 2017 - Paper 1
Question 7
Raj and Abdul want to increase the added value of their products. What is meant by added value? Select one answer. A The difference between what a business pays its... show full transcript
Worked Solution & Example Answer:Raj and Abdul want to increase the added value of their products - Edexcel - GCSE Business - Question 7 - 2017 - Paper 1
Step 1
What is meant by added value?
Answer
Added value refers to the increase in worth of a product or service as it goes through the production process. It is calculated by taking the selling price of the product and subtracting the cost of the inputs used in production. Thus, the correct answer corresponds to option C:
C: The difference between what a business pays its suppliers and what it receives from selling its products.