WikiWealth

The lower the input price, the lower the output price, especially in downward-trending markets. The input cost also help to increase margins on the output and aid in stabilizing the business over time.

The input could be materials, but also labor, which is available in many developing countries. … "Low Cost Input" will have a long-term positive impact on the this entity, which adds to its value. This qualitative factor will lead to a decrease in costs.