Lucy runs a business called LucyArts Ltd, selling a range of art products in Stafford.
Lucy wants to increase the added value of her products.
What is meant by added value?
Select ONE answer:
- The difference between what a business pays its employees and what it receives from selling its products
- Variable costs minus price
- The difference between what a business pays its suppliers and what it receives from selling its products
- Price minus total cost
Show the workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 3
- what you pay employees does not add to a product.
- variable minus price gives fixed costs.
- Correct – is adding value – adding to what the product has cost and what you sell it for.
- price of what? Not specific.
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