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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The time has come to focus on producers of value added goods, rather than yarn manufacturers.
ISLAMABAD -- Prime Minister Shahid Khaqan Abbasi Thursday said that Pakistan would welcome the Japanese companies to invest in Pakistan as it would enhance the capacity of Pakistan's industrial sector to produce value added goods.
"Aayog has asked the Inter-Ministerial Committee (IMC) to prepare an approach paper on the need to shift from export of iron ore to export of value added goods. The report from the IMC is expected this month," he said.
The President said that Pakistan would welcome the Japanese companies to invest and transfer the latest Japanese technology to Pakistan that would enhance the capacity of its industrial sector to produce value added goods.
Imagine if that money had been spent on job creation, improving infrastructure and developing high value added goods and services.
We are positive about Qatar's outlook and will continue to grow and evolve to suit the needs of our customers." 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. As companies import new materials to fuel these emerging industries, the findings show a corresponding shift in the shape of import trends.
Petkim says it aims to expand its product portfolio, to produce new high value added goods. Turkey's attractive petrochemicals market will diversify and reshape Petkim's production chain.
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.
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. These goods have flooded the world market and demand for items such as textiles and clothing has impacted on the logistics market in the UK and the North-east.
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.
While value added goods showed a sustained growth in their exports, yarn exports in the current financial year have been reported to decline.
Currency devaluation or flexible exchange rate boosts exports from the economies with large and technologically advanced industrial base which produce substantial export surplus of value added goods. The economy of Pakistan has been made import based even in exportable products as the manufacturing of these products consume bulk of the imported raw material and intermediate goods which become expensive with currency devaluation.

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