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 ?
We're hoping this scheme will allow as many people as possible to enjoy a classical performance without the added cost, to try something new and discover the joys of classical music first-hand."
Julie Palmer, partner at Begbies Traynor, said: "Sectors that traditionally pay low salaries are most at risk, and I wouldn't be surprised if at least 15,000 firms from that basket go out of business as a result of the added cost."
Operators of both fixed and portable crushing systems may wish to avoid the added cost and hassle of setting up mist or spray systems, but the costs of being perceived as a generator of dust can be even higher.
The committee hopes that in addition to helping fund its approach, the added cost to alcoholic beverages could mean people would drink lower-alcohol products.
Today, due to the increased cost of energy, labor, and machinery, the added cost for the off-fall or regrind averages about 9[cent] to 12[cent]/lb.
Don't forget about the added cost of FC cables and optical transceivers when calculating the TCO for the native Fibre option.
(Blocks are machined on a dedicated transfer line, since, according to Price, there is usually very little design change made to blocks, so the added cost of going with CNC machines does not justify the added capital investment.) In assembly, where practically every operation is manual, engines shuttle down the line on carriages that swivel to allow workers easy access from any angle.
The $6.2 million added cost of combined immunization would be somewhat offset by $2.5 million in savings owing to declines in costs related to treating hepatitis A.
In addition, the added cost, protracted education time, and increase in medical malpractice insurance for the board-certified neurotologic surgeon would needlessly add cost to a patient's care.
Continuing the two remaining arms will help address the question of whether adding a fourth drug to certain 3-drug HAART combination regimens provides enough additional virologic benefit to be worth the added cost in side effects and expense.
AAHP President Karen Ignagni noted that this added cost -- some $18 billion -- could have insured 6.8 million more Americans.