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 ?
Low labour costs and a highly competitive exchange rate have meant that China has become the world's leading manufacturer of relatively low value added goods.
Top priority should be given to export oriented industrial growth particularly value added goods of electronic, engineering, chemical, food processing and IT (hardware and soft-wares) products Electronic and IT industry can playa leading role for generating export earnings increasing GDP substantially.
The Retail Fair, the largest of the four, is pitched squarely at grocery retailers and will reflect the latest trends in ready meals, organics, value added goods and innovative packaging.
He emphasized the need of producing value added goods locally to save foreign exchange as well as create more jobs.
Session Topic: Adding Value to Bilateral Trade As China and LAC are becoming more prosperous regions and wealth spreads rapidly, new tastes for high value added goods and services such as high end tourism, garments and foods create a new and growing market.
Ejaz A Khokhar said 2011 is already announced as an export year and we are trying to export our value added goods to earn more foreign exchange for the country.
It would be prudent to assume that these economies will ultimately look to compete with the UK in the manufacture of high value added goods and that means there is a real importance within the UK for a significant upturn in investment.
While value added goods showed a sustained growth in their exports, yarn exports in the current financial year have been reported to decline.
Product innovation, new product and sector development, a move towards premium pricing of value added goods, and the introduction of specific `prescriptive' brands offering total solutions to haircare problems, have helped stimulate steady overall growth in the majority of areas.
Joseph Community Co-op is to provide quality, value added goods and services to its customers while expanding employment opportunities for its members.
The Bilawal House meeting on gas was attended also by representatives of APTMA, Pakistan Business Council and manufacturers of fertilisers and value added goods in the country besides Sindh Chief Minister Syed Qaim Ali Shah, Secretary General to the President Salman Farooqui, Secretary to the President Asif Hayat, Secretary Petroleum Imtiaz Kazi and Managing Directors of Sui Northern and Sui Southern Gas Companies and other relevant officials.

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