The financial encyclopedia uses cookies to improve your user experience. Find out more here!




Value added


A term for the increment added by each person or organization involved in the manufacture of a particular item, becoming part of its price. As an example, A provides raw materials at 25p, B works on the materials and passes them on to C at 37p, so B has added 12p to the value.

Reference: The Penguin Business Dictionary, 3rd edt.