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Definition of

value added

  • 1.

    difference between cost of materials and selling price the difference between the cost of bought-in materials and the eventual selling price of the finished product

  • 2.

    valuable distinguishing features of product or service the features that differentiate one product or service from another, and thus create value for the customer. Value added is a customer perception of what makes a product or service desirable over others and worth a higher price. Value added is more difficult to measure without a physical end product, but value can be added to services as well as physical goods, through the process of value engineering.

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Definitions of ’value added’ and meaning of ’value added’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’value added’ and other financial terms with our online QFINANCE Financial Dictionary.

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