Question

Which of the following is the equation used to explain value?

a. Cost to company minus benefit to customer
b. Benefit to customer divided by cost to company
c. Benefit to customer minus cost to customer
d. Benefit to company multiplied by cost to customer

Answer 1

The equation used to explain value is: Benefit to customer divided by cost to company.

Step-by-step explanation:

The equation used to explain value is: b. Benefit to customer divided by cost to company. This equation represents the ratio of the benefit received by the customer to the cost incurred by the company. By dividing the benefit by the cost, we can determine the value that a product or service provides to the customer.