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Meaning & use

value added

noun, adjective·Academicbusinessfinance

Last updated

UK/ˌvæljuː ˈædɪd/
US/ˌvæljuː ˈædɪd/

Meanings

  1. noununcountablebusinessfinance

    The extra value a company or process creates beyond the cost of materials and services.

    Grammar: Uncountable: 'value added' is used without 'a' or a plural. Often appears in phrases like 'the value added by...'.

    Patterns

    • the value added by something
    • create value added
    • value added from processing

    The report shows how much value added the factory creates at each stage of production.

    Economists measure value added to understand which industries contribute most to the economy.

    Processing the raw materials locally would increase the value added before export.

  2. adjectivebefore a nounbusiness

    Adding extra worth, usefulness, or benefit to something.

    Grammar: Usually hyphenated before a noun: 'value-added services'. It is not used after a linking verb.

    Patterns

    • value-added products
    • value-added services
    • value-added tax

    The company offers value-added services such as free installation and training.

    Governments sometimes tax value-added products differently from raw materials.

    She argued that the training program was a value-added activity for the whole team.

Common combinations

value-added tax
In many countries, value-added tax is included in the displayed price.
value-added services
The airline charges for value-added services like extra legroom.
create value added
Better design can create value added without raising production costs.
value-added products
The region exports value-added products such as packaged coffee rather than raw beans.

Synonyms and how they differ

added value
Means the same extra worth, but the word order is reversed and it is often used more generally: 'the added value of the course'.
surplus
Refers to an amount left over, not to extra worth created; it does not fit economic discussions of production stages.

Word family

value noun
The worth of something in money or importance.
add verb
To put something together with something else to increase it.

Commonly confused: value added or added value?

value added vs added value

The two forms are close, but 'value added' is the technical economic term, while 'added value' is the everyday phrase for extra benefit.

Practice

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