The idea of value added it is used in the field of accounting , of the finance and of the economy . One of the meanings of the concept refers to the economic value that earns a good When is modified in the framework of the productive process.
This means that, in a context, added value is the economic value that the production process adds to a good. Assume that a natural pine wood table, without any treatment, has a sale price of 200 dollars . If an antibacterial product is applied to said table and varnished, its sale price becomes $ 280 . The value added by this process , therefore, is from 80 dollars .
Beyond this simple example, the technology and the industrial processes They are usually the tools that add more value to a good. Therefore, for the economy of a country Ideally, there are advanced industries capable of transforming raw materials to generate more added value. If a nation only sells raw materials, it will create a reduced value.
For accounting, the added value is the difference that exists between the production cost and the price from market . An automotive manufacturer spends 15,000 pesos to produce a vehicle that then, in the market, sells to 32.000 . The added value for the company is 17,000 pesos by car Keep in mind that these examples are only theoretical, since there are other factors that affect prices (such as taxes, for example).
He Value Added Tax (known by the acronym VAT ) is a tax that applies to consumption: the buyer pays it when purchasing a product. It is an indirect tax since the buyer does not pay the treasury, but it is the seller who receives the money from the buyer and then must pay it to the State .
It is worth mentioning that the concept of added value is also known as value added , and the only difference usually refers to regional issues. However, the latter is more common to talk about High value added , a characteristic of those activities They can make a weirder product.
When the high added value is mentioned in the field of politics or journalism, the objective is to refer to everything that leads consumers to want more product in particular over its alternatives. On the other hand, from the manufacturers point of view, high added value reduces production costs .
An item in this group can cover a need that no one else can, or even "create" one or more that consumers were not aware of. The high added value, in a nutshell, is typical of any product that is synonymous with innovation, especially when new technologies are used for its production and when it includes them to provide unusual performance .
It is not difficult to recognize the high added value in a product, since it is usually noticed in your design , in the way in which it is advertised, in the options which offers its users and even in its price , which is usually very competitive.
To get a benefit relative greater than that of the competition, a company has several options, such as the following:
* offering exactly the same at a lower price, so that the permanence of the other companies in the market is jeopardized, thanks to the combination of a large volume of sales and a cost of lower than normal production;
* presenting a new need to consumers, sometimes also eliminating another.