economic value is the term for the monetary value of goods and services.
what is the term for the monetary value of goods and services?
economic value
bullet::::2. assign a monetary value for each element.









































bullet::::3. determine the selling price of the next-best-alternative to the product or service offered.









































bullet::::4. the cumulative monetary value for each element is known as the "total additional value." add the calculated "total additional value" to the next-best-alternative to determine the evc.









































bullet::::5. select what portion of the "total additional value" the company will capture. note: the remaining value will be passed along to the customer.









































section::::economic value to the customer (evc).:example.
economic value to the customer
whether a part exchange is a sale or a barter is a fine point of law. it depends from whether a monetary value is assigned to the non-money goods supplied. several cases at law clarify this. in the case of "flynn v mackin and mahon" an old car was supplied in part exchange for a new car, along with £250. this was held to be a barter, because no monetary value was affixed to the old car. however, in "aldridge v johnson" a similar transaction was held to be a sale, because a monetary value was assigned to the item being exchanged (23 bullocks, valued at £192), and cash then used to make up the difference to the price of the item being purchased (100 quarters of barley, valued at £215). if the contract had been structured as "23 bullocks and £23 for 100 quarters of barley" then it could have qualified as barter. it is the affixture of the monetary value of £192 to the bullocks and £215 to the barley that made it a sale. indeed, it is not necessary even for the contracting parties themselves to assign a monetary value to the goods for a part exchange deal to be held to be a sale. in "bull v parker", the court itself assigned a value (£4) for new riding equipment, sold for some old riding equipment and £2. if goods/services have obvious monetary values, then a part exchange deal can be held to be a sale.
part exchange