What term describes the process of using market prices of unfinished and semi-finished goods to estimate the incremental value-created by distinctive parts of the value chain?
A)Value-added analysis
B)Value creation analysis
C)Market value analysis
D)Value benefit drivers
E)Value cost drivers

Question

Quizplus · Accepted Answer

Value-added analysis is the process of determining the incremental value created at each stage of the value chain. This is done by subtracting the cost of inputs from the market price of the output, and is a measure of the value added by each stage of production. This analysis is useful in identifying areas where costs can be reduced or value can be added, as well as in determining where to focus investments in the value chain to maximize returns. The other options, such as value creation analysis, market value analysis, value benefit drivers, and value cost drivers, are not specifically related to this process of estimating incremental value at different stages of the value chain.

What Term Describes the Process of Using Market Prices of Unfinished