value added


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value added

n
(Economics) the difference between the total revenues of a firm, industry, etc, and its total purchases from other firms, industries, etc. The aggregate of values added throughout an economy (gross value added) represents that economy's gross domestic product
References in periodicals archive ?
Do our northern politicians understand prices and value added well enough to make the right decisions?
One surprise was that some processing sectors that produced the most value added per worker were the lowest in value added as a percentage of total shipments.
Admittedly, payroll costs are a proxy for the value added by any enterprise, but the tax paid by business suppliers is not directly recoverable by subsequent business purchasers.
Further analysis reveals that sales per employee is not the same measure as economic value added per employee.
The annual indexes are based on industry output in terms of current dollars, defined as value added plus the cost of materials, reported in the Annual Survey of Manufactures; the current dollars are converted to constant dollars with deflators from the Bureau of Economic Analysis, which are based mostly on producer price indexes published by the Bureau of Labor Statistics.
The governments have to take a leading role with value added," Canfield explains, since venture capitalists are hard to come by for small- and medium-sized companies.