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 _____.

Question

Quizplus · Accepted Answer

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.

GeonHouses, a Leading Manufacturer and Supplier of Crockery, Charges Three