Asked by robin singh on Jul 13, 2024
Verified
GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.
A) abstract value
B) modified value
C) captured value
D) differentiation value
Captured Value
The total value a company can capture from its product or service, often reflecting its competitive advantage.
Manufacturing Cost
The expenses directly associated with producing goods, including materials, labor, and overhead.
- Comprehend the principle of value creation in contrast to value capture and its influence on a company's financial success.
Verified Answer
JC
Jadah CarreraJul 18, 2024
Final Answer :
C
Explanation :
The difference between the price charged and the cost of making a product is referred to as captured value. This represents the profit margin or value captured by the company for each unit sold.
Learning Objectives
- Comprehend the principle of value creation in contrast to value capture and its influence on a company's financial success.