exchange value is the term for the monetary value of goods and services.
exchange value is the term for the monetary value of goods and services.
what is the term for the monetary value of goods and services?
exchange 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