VALUE is a broad term often used to denote cost and price. The
equivalent worth of a thing in money or some other medium of exchange.
In Accounting parlance, it is the amount at which assets are recorded
and reported.
In marketing parlance,it is the price at which goods are sold.The
relative worth of goods to a buyer.
Value can be divided into the following classifications:
1.Use or Functional Value:
The proerties and qualities which accomplish a use, work or service.
2.Esteem Value:
The properties,features or attractiveness which cause us to want to
own it.
3.Cost Value:
The sum of labour,material and various other costs required to
produce it.
4.Exchange Value:
Its properties or qualities which enable us to exchange it for
something else we want.
Based on these classifications, value is defined as "the minimum money
which has to be expended in purchasing or manufacturing a product to
create the appropriate use or esteem factors".
It should be borne in mind that:
1.Value is not inherent in a product, it is a relative term, and value
can change with time and place.
2.It can be measured only by comparision with other products which
perform the same function.
3.Value is the relation between what someone wants and what he is
willing to pay for it.
equivalent worth of a thing in money or some other medium of exchange.
In Accounting parlance, it is the amount at which assets are recorded
and reported.
In marketing parlance,it is the price at which goods are sold.The
relative worth of goods to a buyer.
Value can be divided into the following classifications:
1.Use or Functional Value:
The proerties and qualities which accomplish a use, work or service.
2.Esteem Value:
The properties,features or attractiveness which cause us to want to
own it.
3.Cost Value:
The sum of labour,material and various other costs required to
produce it.
4.Exchange Value:
Its properties or qualities which enable us to exchange it for
something else we want.
Based on these classifications, value is defined as "the minimum money
which has to be expended in purchasing or manufacturing a product to
create the appropriate use or esteem factors".
It should be borne in mind that:
1.Value is not inherent in a product, it is a relative term, and value
can change with time and place.
2.It can be measured only by comparision with other products which
perform the same function.
3.Value is the relation between what someone wants and what he is
willing to pay for it.
