Title: The concept of "value creation"
Course: EN_Creation of Value > Section: Understanding economics

You get to know the term...

The concept of value creation describes the transformation of existing goods into goods of higher monetary value. It is the goal of every productive activity.
In a company, it represents the difference between the total output and the inputs used during the creation of a product or service. It can also be related to the performance of an economy and always means the difference between output, the production result, and input, the intermediate inputs used in the process.
These inputs are to be understood as goods or services consumed in the production process. Value added gives an indication of the economic performance and productivity of individual service processes of a company or of entire national economies.

1_Terms around Value Creation_2.h5p