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A component of value added of a firm is the difference between the sales revenue generated from its products or services and the cost of the inputs used in production. This includes wages paid to employees, profits retained by the firm, and any taxes paid. Essentially, value added reflects the firm's contribution to the economy by transforming raw materials into finished goods, enhancing their worth through labor and innovation.
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What is value added What is value added if a firm and value of output is R 20000 and intermediate consumption is R 4990?
Value added is the difference between the value of a firm's output and the cost of its intermediate consumption. In this case, if the value of output is R 20,000 and intermediate consumption is R 4,990, the value added would be R 20,000 - R 4,990 = R 15,010. This represents the firm's contribution to the economy, reflecting the additional value created through its production processes.
Why it might be desirable for a firm to have higher added-value products?
to establish a brand name for example nike shoes have a high added value. if the demand for the product of a firm suddenly soars due to some influencial events (example:the demand for the design of shades worn by psy suddenly soared after his mv gangnam style became famous) the firm can add higher added value and benefit when this kind of senario is witnessed to benefit as much as possible before the heat turns off. higher added value gives a sense of luxury goods and people buy it either to show off or because they like the product but either way the sales go up. if a firm has higher added value it can pay all the expenses such as wages, rent etc and still earn more profit(if it can add value without increasing cost.) and is successful in profit satisfying. if a business can add value that is much greater than the cost of production the business is said to be successful.
Why should the shareholder of a firm care about maximizing a value of a firm?
the value of a firm determines their wealth.if the value of a firm,which is the market price per share of the total number of shares issued,is increased,invariably the shareholders' return is increased..by John I Agwu
What is shareholder's surplus?
Capital surplus is a term that frequently appears as a balance sheet item as a component of shareholders' equity. Capital surplus is used to account for that amount which a firm raises in excess of the par value (nominal value) of the shares (common stock).
Advantages of high added value products for a firm?
The customers will get very quality product. The business can sell products for a higher price. It will help the business to overcome the competitors.
In the calculation of GDP, the value of a new house constructed by a firm is included in which component?
The value of a new house constructed by a firm is included in the investment component of GDP.
What is value added What is value added if a firm and value of output is R 20000 and intermediate consumption is R 4990?
Value added is the difference between the value of a firm's output and the cost of its intermediate consumption. In this case, if the value of output is R 20,000 and intermediate consumption is R 4,990, the value added would be R 20,000 - R 4,990 = R 15,010. This represents the firm's contribution to the economy, reflecting the additional value created through its production processes.
Is it accurate to claim that all organization add value if they are successful?
It depends on how your organization defines "value". In a strictly manufacturing environment, "value added" refers only to processes that change the characteristics of the component or product. So if the organization successfully changes the characteristics of the product or component, then it is value-added. Also an organization can be "value-added" and not be successful.
When a firm hires a worker for one hour the marginal benefit to that firm equals the?
The marginal benefit will be the value added by that one hour of work. Say the worker is an economist and produces $50 worth of service work in that hour for the firm. The marginal benefit would be $50. If the worker is in production and spins $10 worth of thread into fabric the firm can sell for $100, then the value added (and the marginal benefit) is $90.
What is 'value of a firm'?
The 'value of a firm' is connected with profit maximization. It is the present value of the firm's current profit and the future profit. It determines the value accurately.
What is a firm's value?
The 'value of a firm' is connected with profit maximization. It is the present value of the firm's current profit and the future profit. It determines the value accurately.
Is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI?
value-added-network(VAN)
What is an independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI?
value-added-network(VAN)
Why it might be desirable for a firm to have higher added-value products?
to establish a brand name for example nike shoes have a high added value. if the demand for the product of a firm suddenly soars due to some influencial events (example:the demand for the design of shades worn by psy suddenly soared after his mv gangnam style became famous) the firm can add higher added value and benefit when this kind of senario is witnessed to benefit as much as possible before the heat turns off. higher added value gives a sense of luxury goods and people buy it either to show off or because they like the product but either way the sales go up. if a firm has higher added value it can pay all the expenses such as wages, rent etc and still earn more profit(if it can add value without increasing cost.) and is successful in profit satisfying. if a business can add value that is much greater than the cost of production the business is said to be successful.
Why it might be desirable for a firm to have higher added value products?
to establish a brand name for example nike shoes have a high added value. if the demand for the product of a firm suddenly soars due to some influencial events (example:the demand for the design of shades worn by psy suddenly soared after his mv Gangnam Style became famous) the firm can add higher added value and benefit when this kind of senario is witnessed to benefit as much as possible before the heat turns off. higher added value gives a sense of luxury goods and people buy it either to show off or because they like the product but either way the sales go up. if a firm has higher added value it can pay all the expenses such as wages, rent etc and still earn more profit(if it can add value without increasing cost.) and is successful in profit satisfying. if a business can add value that is much greater than the cost of production the business is said to be successful.
If the market value added is positive the market value of the firm's outstanding share of stock a has been created or b has been destroyed or c has had no change or d is in the top performers?
the answer is A. if the market value of the firms investments exceeds the total capital invested in the firm, then sharholder wealth has been created to the extent of the difference.
What has the author Edward Geoffrey Wood written?
Edward Geoffrey Wood has written: 'Added value' -- subject(s): Value added 'Bigger profits for the smaller firm' -- subject(s): Management, Small business 'British industries' -- subject(s): Industries
