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Value added

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132:'s design theory for production synergies. He divides transformation processes into two categories, parts and aspects. Parts can be compared to timeline stages, such as first preparing the dish, then washing it, then drying it. Aspects are equated with area specialization, for example that someone takes care of the part of the counter that consists of glass, another takes care of the part that consists of plates, a third takes care of cutlery. An important part of understanding value added is therefore to examine delimitations. 142:
Outside of business and economics, value added refers to the economic enhancement that a company gives its products or services prior to offering them to the consumer, which justifies why companies are able to sell products for more than they cost the company to produce. Additionally, this
139:, the term refers to the contribution of the factors of production (i.e. capital and labor) to raise the value of the product and increase the income of those who own the said factors. Therefore, the national value added is shared between capital and labor. 221:
on sales. It is assessed incrementally on a product or service at each stage of production and is intended to tax the value that is added by that production stage, as outlined above by unit value added.
412: 359: 104:(e.g. manufacturing companies) and a lower portion of revenue for less integrated companies (e.g. retail companies); total value added is very nearly approximated by 257: 438: 242: 61:
which measures only the financial profits earned upon transformational processes for specific items of sale that are available on the market.
169: 124:, value added may be defined as the market value of aggregate output of a transformation process, minus the market value of aggregate 422: 173: 157:
The factors of production provide "services" which raise the unit price of a product (X) relative to the cost per unit of
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of a product or service, and the sum value of its constituents. It is relatively expressed to the
576: 128:(or aggregate inputs) of a transformation process. One may describe value added with the help of 536: 541: 46: 491:
The meaning and measurement of the national income, and of other social accounting aggregates
125: 109: 505: 272: 237: 42: 330: 8: 500: 192:(or depreciation charges) from gross value added. Net value added therefore equals gross 143:
enhancement also helps distinguish the company's products from those of its competitors.
73: 30: 432: 50: 453: 308: 418: 267: 232: 177: 165: 89: 482: 214: 209: 81: 496: 197: 136: 129: 121: 550: 282: 252: 262: 181: 85: 38: 34: 277: 58: 287: 185: 54: 93: 92:) per each unit sold. Thus, total value added is equivalent to 309:"Value-Added Product: What It Means in Industry and Marketing" 193: 77: 542:
Value Add - Your Value Add is what Matters to Your Company
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Measures of national income and output#The output approach
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is obtained by deducting intermediate consumption from
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The difference between input value and market value
258:United Nations System of National Accounts (UNSNA) 41:curve for specific units of sale. It represents a 100:. Value added is a higher portion of revenue for 548: 483:Deardorff's Glossary of International Economics 437:: CS1 maint: multiple names: authors list ( 387:"Value Added: Opportunities and Strategies" 196:, pre-tax profits net of depreciation, and 188:. Net value added is obtained by deducting 108:, which represents a return to labor, plus 170:United Nations System of National Accounts 112:, representative of a return to capital. 381: 379: 153:National accounts ยง Main components 53:. Value added is distinguished from the 33:for calculating the difference between 549: 410: 451: 376: 331:"International Economics Glossary: V" 184:. Thus gross value added is equal to 524:Anatomy of Social Accounting Systems 354: 352: 350: 174:National Income and Product Accounts 146: 509:. "Glossary of Terms," Value added. 13: 474: 248:Productive and unproductive labour 203: 14: 588: 530: 347: 411:Sitter, Sitter, L.U. de (1994). 161:used up in the production of X. 68:is calculated by tabulating the 517:Measuring the Wealth of Nations 486:(Click "V' for "Value added.") 445: 404: 323: 301: 1: 360:"What does value added mean?" 294: 172:(UNSNA) or the United States 115: 515:& Ahmet Ertugrul Tonak, 190:consumption of fixed capital 18:Value-added (disambiguation) 7: 225: 10: 593: 452:Hayes, Adam (2020-08-28). 207: 150: 72:(measured by summing unit 15: 537:What Does Value Add Mean? 454:"Why Value-Added Matters" 392:. Kansas State University 106:compensation of employees 76:โ€” the difference between 98:intermediate consumption 414:Synergetisch Produceren 335:www-personal.umich.edu 110:earnings before taxes 273:Value-added reseller 238:Economic value added 102:integrated companies 47:production economics 16:For other uses, see 562:Valuation (finance) 557:Financial economics 501:William D. Nordhaus 364:www.definitions.net 31:financial economics 159:intermediate goods 51:financial analysis 43:market equilibrium 572:National accounts 567:Marxian economics 497:Paul A. Samuelson 489:Edgar Z. Palmer, 424:978-90-232-3365-7 268:Value (marketing) 233:Bang for the buck 178:gross value added 166:national accounts 147:National accounts 66:total value added 584: 468: 467: 465: 464: 449: 443: 442: 436: 428: 408: 402: 401: 399: 397: 391: 383: 374: 373: 371: 370: 356: 345: 344: 342: 341: 327: 321: 320: 318: 316: 305: 200:less subsidies. 70:unit value added 592: 591: 587: 586: 585: 583: 582: 581: 547: 546: 533: 480:Alan Deardorff 477: 475:Further reading 472: 471: 462: 460: 450: 446: 430: 429: 425: 409: 405: 395: 393: 389: 385: 384: 377: 368: 366: 358: 357: 348: 339: 337: 329: 328: 324: 314: 312: 307: 306: 302: 297: 292: 228: 215:Value-added tax 212: 210:Value added tax 206: 204:Value added tax 155: 149: 118: 88:cost, and unit 82:production cost 24: 21: 12: 11: 5: 590: 580: 579: 577:Business terms 574: 569: 564: 559: 545: 544: 539: 532: 531:External links 529: 528: 527: 520: 510: 494: 487: 476: 473: 470: 469: 444: 423: 417:. van Gorcum. 403: 375: 346: 322: 311:. Investopedia 299: 298: 296: 293: 291: 290: 285: 280: 275: 270: 265: 260: 255: 250: 245: 240: 235: 229: 227: 224: 208:Main article: 205: 202: 198:indirect taxes 168:, such as the 151:Main article: 148: 145: 137:macroeconomics 130:Ulbo de Sitter 122:microeconomics 117: 114: 22: 9: 6: 4: 3: 2: 589: 578: 575: 573: 570: 568: 565: 563: 560: 558: 555: 554: 552: 543: 540: 538: 535: 534: 525: 522:M. Yanovsky, 521: 518: 514: 511: 508: 507: 502: 498: 495: 492: 488: 485: 484: 479: 478: 459: 455: 448: 440: 434: 426: 420: 416: 415: 407: 388: 382: 380: 365: 361: 355: 353: 351: 336: 332: 326: 310: 304: 300: 289: 286: 284: 283:Value product 281: 279: 276: 274: 271: 269: 266: 264: 261: 259: 256: 254: 253:Surplus-value 251: 249: 246: 244: 241: 239: 236: 234: 231: 230: 223: 220: 216: 211: 201: 199: 195: 191: 187: 183: 179: 175: 171: 167: 162: 160: 154: 144: 140: 138: 133: 131: 127: 123: 113: 111: 107: 103: 99: 95: 91: 87: 83: 79: 75: 71: 67: 64:In business, 62: 60: 56: 52: 48: 44: 40: 39:supply-demand 36: 32: 29:is a term in 28: 19: 523: 516: 513:Anwar Shaikh 504: 490: 481: 461:. Retrieved 458:Investopedia 457: 447: 413: 406: 394:. Retrieved 367:. Retrieved 363: 338:. Retrieved 334: 325: 313:. Retrieved 303: 263:Valorisation 213: 182:gross output 163: 156: 141: 134: 119: 86:depreciation 69: 65: 63: 35:market value 26: 25: 278:Value chain 217:(VAT) is a 59:added value 27:Value added 551:Categories 463:2021-05-17 369:2021-05-17 340:2021-05-17 295:References 288:Wage share 186:net output 116:Definition 90:labor cost 78:sale price 55:accounting 506:Economics 433:cite book 396:14 April 315:14 April 226:See also 176:(NIPA), 45:view of 503:(2004) 94:revenue 84:, unit 519:. CUP. 421:  96:minus 74:profit 390:(PDF) 194:wages 126:input 57:term 499:and 439:link 419:ISBN 398:2023 317:2023 80:and 49:and 219:tax 164:In 135:In 120:In 553:: 456:. 435:}} 431:{{ 378:^ 362:. 349:^ 333:. 526:. 493:. 466:. 441:) 427:. 400:. 372:. 343:. 319:. 20:.

Index

Value-added (disambiguation)
financial economics
market value
supply-demand
market equilibrium
production economics
financial analysis
accounting
added value
profit
sale price
production cost
depreciation
labor cost
revenue
intermediate consumption
integrated companies
compensation of employees
earnings before taxes
microeconomics
input
Ulbo de Sitter
macroeconomics
National accounts ยง Main components
intermediate goods
national accounts
United Nations System of National Accounts
National Income and Product Accounts
gross value added
gross output

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