Value creation is what the firm adds to a product or service by virtue of making it; it's the amount of benefits provided by the product or service once the costs of making it are subtracted.

Question

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Value creation refers to the process through which a company produces products or services that are worth more than the cost of the inputs used in their creation. This difference represents the value added by the firm, which can be seen as the benefits provided to the customers minus the costs incurred in producing those goods or services.

Value Creation Is What the Firm Adds to a Product