value added

Definitions (3)
Related Terms
1. Accounting: Alternative term for gross income.
2. Economics: Difference between the total sales revenue of an industry and the total cost of components, materials, and services purchased from other firms within a reporting period (usually one year). It is the industry's contribution to the gross domestic product (GDP) and is the basis on which value added tax (VAT) is computed. See also economic value added.
3. Marketing: Creation of a competitive advantage by bundling, combining, or packaging features and benefits that result in greater customer acceptance.

Use 'value added' in a Sentence

I needed to determine the value added before we moved forward in our business because that would determine the difference.
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You should always try to add in the value added to any sort of deal so that you know the true price of what you get.
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Europe recently changed how they calculated the value added tax, causing confusion among independent authors in the pricing of their books.
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