Value added - is part of the product cost, which was set up in the organization.
The difference between the cost of goods sold and purchased goods and services.
The concept of added value
Added value (value added)calculated as the difference between revenue and cost of goods and services purchased from outside organizations. The latter include, in particular, the cost of raw materials and semi-finished products, maintenance, marketing, services, energy costs, and so on.
The added value of a commodity is the one (orservices), which increases the cost of the product during processing prior to sale to the consumer. It includes salary fund, rent, depreciation, rent, interest on the loan, as well as profits.
For example, the company sold products worth100 tys.r. For the production of these products it has purchased the raw material in the 30 th. P., As well as payment for services outsourced by 10 thousand. Rub. The added value in this case is 60 thousand. P. (100 - 30 - 10) or 60% of the final product cost.
Western economists also share the conceptnegative value added when additional processing not only adds cost of goods, but on the contrary, it decreases. In a market economy, and this phenomenon is not applicable to the planned model.
The company's added value is used in the following areas:
- Payment of salary (salary, bonuses, compensation, contributions to non-budgetary funds) -
- Payment of taxes (excluding sales taxes and VAT) -
- Payment of bank interest, dividends and other platezhey-.
- Investment in the acquisition of the operating system, R & D and intangible aktivov-
- OS amortization.
If after all the expenses incurred, weremeans, they are called the retained value added (Retained Value Added). The latter can be negative when the added value is insufficient to cover all costs.
Gross value added
Distinguish the concept of gross value added,which is calculated at the level of economic sectors. It is defined as the difference between output of goods (services) and intermediate consumption. The summation of the gross value added of all economic sectors is the sum of GDP at the production level.
Intermediate consumption - total costconsumption of goods and services for the production of other goods (services). This, in particular, raw materials, purchased components and semi-finished products, fuel, electricity and so on.
Economic Value Added
Economic Value Added (EVA) - onemethods of assessment of economic profit, which is used in the analysis of business performance from the standpoint of the owners. This is the company profit from operations, net of tax and reduced by investing in capital (their own and borrowed funds).
EVA formula = profit - taxes - invested in venture capital (the sum of the balance sheet liability) * weighted average price of capital.
Thus, the economic value added less profit (and thus more losses) by the amount of payment for the capital.