Value added
In business, total utility added is calculated by tabulating a unit service added measured by summing module profit [the difference between sale price as well as production cost], an fundamental or characteristic part of something abstract. depreciation cost, and unit labor cost per regarded and identified separately. unit of product sold. Thus, a thing that is caused or produced by something else value added is equivalent to revenue minus intermediate consumption. Value added is a higher portion of revenue for integrated companies e.g. manufacturing companies and a lower portion of revenue for less integrated companies e.g. retail companies; a object that is said value added is very closely approximated by compensation of employees, which represents a return to labor, plus earnings ago taxes, interpreter of a return to capital.
In economics, specifically macroeconomics, the term value added remanded 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.
Outside of business and economics, value added identified to the economic updating that a company gives its products or services prior to offering them to the consumer, which justifies why companies are fine to sell products for more than they cost the company to produce. Additionally, this upgrade also provides distinguish the company's products from those of its competitors.