value added


Also found in: Dictionary, Acronyms, Wikipedia.

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 by oil activities increased by 3.2 per cent, while non-oil activities recorded an increase of 1.2 per cent in Q4, 2018 compared with Q3, 2018.
Chief technical officer InterVAS Botswana office, Mr Mumbi Musunga said in the telecommunications domain, value added services, also known as VAS, were mobile products and services that completed the telecommunications industry's core services.
Throughout 2018, the value added of the non-manufacturing industries sector dropped by 1.2%, compared to a 3.4% decline in 2017.
In the manufacturing sector, labour productivity rose 2.4 per cent, with value added registering a 5.0 per cent growth.
Bangladesh's Value Added Textile exports has reached at US$30.24 billion (FY2016-17) as they allows duty free import of Raw Material - Cotton Yarn and always encourage value addition which is their key to success.
He said that the value added textile export sector is the backbone of the nation's export and has the ability to uplift the exports and economy.
The value added textile products in Pakistan are bed wear, towels, hosiery, knitwear, ready-made garments and other made ups.
Furthermore, value added at the firm level may not translate to appreciably higher GRP.
Despite increasing calls for value-based payments, existing methodologies for determining physicians' "value added" to patient health outcomes have important limitations.
Traditionally, international trade flows are determined by attributing the full value of an imported or exported good to the country in which the manufacturer responsible for the product's final stage of production is located; this is true regardless of the value added by that manufacturer.
Value added tax (VAT) is a consumption tax because of its extensive rang, more rapid recovery, and competition to attract investments, governments have been.