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Date: 2025-04-02 Page is: DBtxt003.php L0900-MM-Cost-Price-Value-4a
MANAGEMENT METRICS
COST, PRICE & VALUE [4a]
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When PRICE is changed, then the manner in which ValueAdd is distributed changes as well ...
VALUE ADD depends on production costs and the resulting VALUE in the hands of the customer.
Product will not sell when PRICE is more than VALUE.
The most PROFIT is when PRICE is close to VALUE.
The most VALUE ADD attributable to customer is when PRICE is closer to COST.
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