Value-Added

Discipline: Economics

Also known as: added value

The difference between the cost of a commodity and the price it is sold.

One example is the value-added during production, as in the difference between the cost of raw materials and manufacturer's sales price. Another example us the value-added during distribution, as in the difference between the cost of wholesale purchase price and the distributor's sales price to the retailer.

Added-value occurs on multiple stages.

Also see:

· value-added tax

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