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 ?
THE VALUE-ADDED WATER MARKET The Value-Added Water Market Segments -- Overview -- Enhanced Water -- Flavored Water -- Essence Water -- Structured Water -- Seasonality
Clearly the value-added aspect of the deconstruction and reuse industry provides much greater potential for employment than the initial stages of deconstruction or direct retail resale by itself.
Robert Mendro, the district's research director, says that the Dallas schools such as Marcus that have used the student and teacher information that value-added testing gives them to target reforms have outperformed their peers.
In the process of gathering information for the report, members of the task force researched and analyzed several rural ventures in the Corn Belt to gain a better understanding of what makes a value-added venture successful.
First, Ballou overstates the risk to value-added assessment that comes from the question of whether or not scales can be developed with equal intervals.
For the time being, value-added castings are relatively import proof.
The focus of value-added resellers and service firms on midmarket opportunity is most likely the result of these firms having the domain expertise required by this market.
But the interesting thing is that loggers - the guys who work out in the woods - are the ones who show the most interest in value-added wood processing, because they can see what's happening to the resource.
Taxing financial institutions under a value-added tax system is problematic.
AT&T began quantifying economic value-added, an increasingly popular measurement of shareholder value, in 1992, making it possible not only "to measure the business unit, but for the business unit to use that measure," Kavner explains.
In the index, series that measure the output of an individual industry are weighted according to their proportion in the total value-added output of all industries.