Operations Mangament- Added Value

Question 1

Explain what added value is

Answer 1

the increased utility of a product as it passes through different production stages

Question 2

How is added value calculated

Answer 2

Added Value = The selling price of a product - the cost of bought-in materials and components.

Question 3

Usefulness of added value

Answer 3

Can increase the profit margins and make sure that the business can cover its costs per product