VALUE ADDED Meaning and
Definition
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Value added refers to the additional worth or benefit that is gained from a particular action, process, or product. In business and economics, value added typically describes the increase in value that occurs at each stage of the production process. It represents the difference between the value of the inputs used in the production and the resulting value of the outputs.
Value added is often measured by calculating the difference between the total value of a company's output and the cost of the materials used to produce that output. This calculation helps determine how much value has been created through the company's operations. This concept is essential for businesses as it allows them to gauge their productivity and efficiency.
Moreover, value added can also refer to the additional features, benefits, or improvements that are incorporated into a product or service to make it more appealing to customers. For instance, a company might add value to its products by including bonus features, providing excellent customer service, or offering personalized options.
In general, value added is a crucial factor in both economic and business contexts as it measures the amount of value contributed at each stage of production and highlights the additional benefits offered to customers. Companies that focus on creating value added are more likely to gain a competitive edge in the market and attract loyal customers.
Common Misspellings for VALUE ADDED
- calue added
- balue added
- galue added
- falue added
- vzlue added
- vslue added
- vwlue added
- vqlue added
- vakue added
- vapue added
- vaoue added
- valye added
- valhe added
- valje added
- valie added
- val8e added
- val7e added
- valuw added
- valus added
- valud added
Etymology of VALUE ADDED
The etymology of the term "value added" dates back to the mid-20th century and primarily originates from the field of economics.The word "value" stems from the Latin word "valor", meaning "worth, value", which became "valew" in Old French. Eventually, it evolved into the word "value" in Middle English. In its basic sense, "value" refers to the worth or importance of something.The addition of the term "added" emphasizes the act of enhancing or increasing the worth or value of something. The word "added" originates from the Old English word "ādettan", which means "to add". It is derived from the Old Norse word "etta", meaning "to join, add". Ultimately, it comes from the Proto-Germanic word "atjaz" and the Proto-Indo-European root "hed", both conveying the concept of "joining" or "adding".
