value added

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Related to value-added: value-added tax

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 ?
Stahl Specialty became a one-stop supplier for its customers by providing value-added services.
The subcontracted material and parts become part of a value-added chain.
The CNP study stated that, in the long term, the best option to reduce the deficit and raise revenue may be a national value-added or retail sales tax.
What we would like to see is Atikokan become the value-added capital of Ontario," says Warren, a former Proboard employee.
Cranel Imaging is the nation's leading value-added distributor (VAD) of document imaging, storage and duplication products and services.
Value-added means doing more with the wood before we ship it out.
However, they can use their interactive networks, their brands and their skills to offer a variety of value-added services that will not be subject to such strong competition and allow them to make much better margins.
The goal is to create and stimulate economic development opportunities in the value-added wood sector.
Roy Vallee, Avnet's Chairman and Chief Executive Officer, commented, "The acquisition of Access creates a level of scale and scope for our Technology Solutions Group that is unmatched in value-added IT distribution.
Tembec will cease the Kirkland Lake sawmill operations March 4, 2005 and redirect the company's focus to a value-added partnership with Domtar in the same community.
Access Distribution, a General Electric company and part of the Capital Solutions business, is a premier value-added technical distributor of complex computer products, solutions and services.
met with provincial ministers and representatives from Forintek to begin the process of introducing expertise on value-added manufacturing in Kenora, and the North.