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Value Added | Send-To | Print | More
Category: Business & Economy | 1260 views
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© Economic Research Service
In economic statistics, value added refers to the difference between the value of shipments (net selling value at the plant) and the cost of materials, supplies, containers, fuel, purchased electricity and contract work. Major components of value added include employee compensation, capital costs, and profits. In agribusiness parlance, value added often refers to activities that involve further processing or more timely distribution of a product (and hence "add value").
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© Information Technology Investment Evaluation Guide
Those activities or steps that add to or change a product or service as it goes through a process; these are the activities or steps that customers view as important and necessary.
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