Value-Added Activity

Value-Added Activity

An activity that increases the value of a product at a given 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.
References in periodicals archive ?
EMPLOYERS in the financial services sector say Wales must escape its stereotypical "call-centre nation" image and move to higher value-added activity.
Every value-added activity is vulnerable to Murphy's Law unless you do something proactive to prevent bad things from happening.
ALEXANDER: Value-added activity adds something to your product or service that the customer wants.
Much of the value-added activity of these firms is directed to the U.