Efficiency is the useful output received from the total input. Examples can be the reduction in the quantity of raw material used for producing a certain product or the reduction in labour required for producing the same product. Efficiency minimises the wastage of raw material, labour, energy, time etc.
Value is the worth or usefulness of a thing. Value of the same product can vary according to demand and supply.
When efficiency increases, value of the enterprise increases and the value of the product decreases. When the inputs are are most efficiently utilised, quality and quantity of the output increases leading to an increase in the value of the enterprise or business.
Get Answers For Free
Most questions answered within 1 hours.