Asked by Leroy Jankins on Jun 29, 2024
Verified
Value creation is what the firm adds to a product or service by virtue of making it; it's the amount of benefits provided by the product or service once the costs of making it are subtracted.
Value Creation
What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted.
Product
A good, idea, method, information, object, or service created as a result of a process and serves a need or satisfies a want.
Service
The action of helping or doing work for someone, often referred to in the context of providing intangible value such as customer support, maintenance, or consultation.
- Comprehend the principles of value creation within an organization and the differentiation between products and services.
Verified Answer
AJ
aysia jonesJul 02, 2024
Final Answer :
True
Explanation :
Value creation refers to the process through which a company produces products or services that are worth more than the cost of the inputs used in their creation. This difference represents the value added by the firm, which can be seen as the benefits provided to the customers minus the costs incurred in producing those goods or services.
Learning Objectives
- Comprehend the principles of value creation within an organization and the differentiation between products and services.