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 ?
By 2030 the top goods exported by at least half of the world's main trading nations will change, with a trend towards exporting higher value added goods.
Public incentives can help forge collaborations between enterprises, particularly those working in similar fields to increase productivity, produce value added goods and services and to achieve economies of scale.
It may not be in a position to import capital goods and modern machinery for its upgradation and production of value added goods.
A favourable contribution had the budding recovery of economic activity in the European Union, with the turnover value for foreign markets posting a faster pace in several sub-sectors producing high value added goods (machinery and equipment, electrical equipment, road transport vehicles and vehicles other than land vehicles).
We are the world's sixth largest manufacturer and the future strength of our economy will be built on high value added goods and services which are already produced by businesses across the region and the country.
To Sardinha, the paradigm must be shifted when it comes to exports to Algeria, which are too concentrated in basic products and must include higher value added goods.
Furthermore, whilst many low cost competitors, such as China, have been striving to become more innovative, only two fifths of companies saw higher value added goods from these competitors as posing a threat and only 3% a significant threat, down from 50% and 12%, respectively in 2004.
Low labour costs and a highly competitive exchange rate have meant that China has become the world's leading manufacturer of relatively low value added goods.
Top priority should be given to export oriented industrial growth particularly value added goods of electronic, engineering, chemical, food processing and IT (hardware and soft-wares) products Electronic and IT industry can playa leading role for generating export earnings increasing GDP substantially.
The Retail Fair, the largest of the four, is pitched squarely at grocery retailers and will reflect the latest trends in ready meals, organics, value added goods and innovative packaging.
Firms responded by moving up market into higher value added goods (the same pattern that was to be followed by the automobile industry) but also by strengthening their market self-discipline and sharing information.

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