The analysis of added value is a formal mechanism that managers and analysts use to evaluate how much of the value created in a transaction the firm can appropriate in the form of profits.

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The analysis of added value is indeed a formal mechanism used by managers and analysts to assess the portion of value created in a transaction that the firm can capture as profits. This involves understanding the value chain and determining how much value the firm adds to its products or services, which in turn helps in strategizing how to maximize profit margins.

The Analysis of Added Value Is a Formal Mechanism That