07 Analyse why 'value of sales' might be a better measure of business size than 'value of output'.

[MuhammadAli91191]

[KN] The value of sales measures the total money a business earns from selling its products, while the value of output only shows what has been produced, not what is actually sold.
[APP] For example, a company like Sony might produce many TVs, but if some remain unsold, its output value will be high but sales value will be lower showing the real size more accurately through sales.
[AN] Using the value of sales is better because it reflects the business’s financial strength and market position, helping managers make better choices about pricing, marketing, and production based on real customer demand.