Question

explain the concept of value addition with an example.​

Answer 1

Answer:

The difference between the price of a product or service and the cost of producing it.

For example, offering a year of free tech support on a new computer would be a value-added feature.

Explanation:

Value-added is the difference between the price of a product or service and the cost of producing it. The price is determined by what customers are willing to pay based on their perceived value. ... For example, offering a year of free tech support on a new computer would be a value-added feature.

Answer 2

Value addition is the process of improving the utility of any product.

Explanation:

1. When the utility of any product is improved or the usage is diversified, the process is known as value addition.
2. The process of value addition is generally done by putting the product under various mechanical processes and activities.
3. For better understanding, take example of iron ore. The iron ore is processed in industries to turn it into a fine form of iron which is used in heavy industries. Now, this iron ore cannot be directly used in many ways but once it is converted into iron it has multiple uses and better utility. This is known as the process of value addition.