Definition of
value added
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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
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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.
Related definitions of "value added"
- Also called added value
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