value added

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Value Added

Value added is the risk adjusted return generated by an investment strategy: the return of the investment strategy minus the return of the benchmark.

Value Added

The increase to the value of a product at each stage in a production cycle or supply chain. For example, a timber company cuts down trees, which adds value to the wood because it can then be used. It may then sell the timber to a miller, who adds value by refining the timber into planks of wood. A carpenter who buys the planks adds value by making them into a table, which can then be sold to a customer. The concept of value added is most important in countries and other jurisdictions that have a value-added tax.

value added

the difference between the value of a firm's (or industry's) output (i.e. the total revenues received from selling that output) and the cost of the input materials, components or services bought in to produce that output. Value added focuses attention on the value that a company adds to its bought-in materials and services through its own production and marketing efforts within the company.

A firm will measure its value added as the difference between its SALES REVENUE and the COST of its bought-in materials and services. Where a firm operates at only one level of production or distribution in a VALUE-ADDED CHAIN, it will generally add less value than a vertically integrated firm which embraces several production and distribution stages. See VALUE CREATED MODEL, CONSUMER SURPLUS, VERTICAL INTEGRATION, VALUE-ADDED TAX, VALUE-ADDED STATEMENT, VALUE ADDED PER EMPLOYEE, PROFIT AND LOSS ACCOUNT, ECONOMIC VALUE ADDED.

value added

the difference between the value of a firm's (or industry‘s) output (i.e. the total revenues received from selling that output) and the cost of the inputs of raw materials, components or services bought in to produce that output. ‘Value added’ is the value that a firm adds to its bought-in materials and services through its own production and marketing efforts within the firm. See VALUE-ADDED TAX, VALUE-CREATED MODEL.
References in periodicals archive ?
338 election is not usually made because of the added cost to the buyer.
Custom chips can be created to provide these functions, but their long design time and added cost can be prohibitive.
The added cost of 75 cents to bring each pig to production is over-ridden by the savings in the cost of antibiotics.
Michael Larson, senior vice president of Toshiba America, said his company is not a big fan of anything that adds cost to a TV set, but he added that, when closed-captioning was mandated, major manufacturers ate the added cost.
0 and is designed to be embedded into laptop docking stations, monitors and digital projectors, allowing easy connectivity without the added cost and installation difficulties of traditional methods.
The ground floor's flexible floor plan offers buyers the added cost option of additional finished space.
The projects come at an added cost - roughly 5 percent more than older technologies - but pay for themselves over the long term in the form of lower water and electricity bills.
As a result, the overall material cost will be less than the added cost of current coating methods, say Teknor sources.
In addition, this added cost would also be spread out over a far longer period.
And through its new Customer Care Center, Olympus also provides a complete range of service solutions on Olympus equipment at no added cost to TEAM customers.
By piggybacking on Surveyor, the Russian experiments could proceed without the added cost of a carrier.
The added cost would be small, about 2 cents per million BTUs " acknowledges Ronald McMahan, an analyst for Resource Data International in Boulder, Colorado.