Define the term 'value added'.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [2] the amount by which the value of a product/service is increased during the production process (2), or
2. [2] the difference between the price of a finished product/service and the cost of the inputs involved in producing it (2).
3. [2] Sound definition – as the two examples above
4. [1] Partial definition – correct reference only to the cost of inputs, or reference only to the price of finished product/services.
5. [0] No creditable content.
6. [3] Reduce costs by changing supplier or purchasing in bulk or reducing wastage of ingredients.
7. [3] Increase prices to reflect enhanced product / service provision.
8. [3] Producing more unique / distinctive 'celebrity chef' meals.
9. [3] Creating a more superior/distinctive eating environment / ambience.
10. [3] Upgrade the kitchen to produce more distinctive food offerings.
11. [3] Offer a more comprehensive / distinctive menu.
12. [3] Carry out more effective promotion.
13. [3] Sound explanation of two ways a restaurant could increase its value added
14. [2] Sound explanation of one way or partial explanation of two
15. [1] Partial explanation of one way or a list of two
16. [0] No creditable content