value added
"Value added" is a key concept in economics and business, reflecting the enhancement or improvement of products or services, contributing to profitability and market differentiation.
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Definition
C1Production
(technical, economic)The increase in worth of a product or service at each stage of its creation, excluding initial costs.
Example
- The value added by the assembly line significantly boosted the product's market price.
C1Product Development
(business)Features or enhancements added to a basic product model, justifying a higher price.
Example
- The value added through additional features made the smartphone more appealing to customers.
C2National Accounts
(economic, technical)The difference between an industry's total revenue and the cost of inputs, used to measure GDP contribution.
Example
- The value added by the manufacturing sector is a significant component of the nation's GDP.
C2Taxation
(economic, legal)A tax on sales assessed incrementally at each stage of production.
Example
- Value-Added Tax (VAT) is calculated based on the value added at each production stage.
Similar
Terms that have similar or relatively close meanings to "value added":