VALUE ADDED

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
I am having problems working out value added, my brain is blocked! could some one please explain it to me

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VALUE ADDED

    'Value added' as a financial measure refers to the difference between the value of outputs and the value of inputs. It shows the increase in monetary value which has resulted from the work done and the use of assets within the organisation. For the calculation of value added, "inputs" are defined as "materials and bought-in services". These have been brought into the organisation from outside. The monetary value of outputs is sales revenue or turnover, which is their value as they go to outside customers.

    Value added = Turnover - (cost of materials used and bought in services)

    Regards

    Dean

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VALUE ADDED

    Thanks mate, makes sense.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VALUE ADDED

    Your welcome :)

    I can't take credit for it though becuase its just direct text from the osborne book :lol:

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VALUE ADDED

    Hi Dean, could you tell me which Osborne book you got this from please :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VALUE ADDED

    Its the Managing Performance & Resources one, the tutorial for units 8 & 9.

    ISNB 1-872962-91-2

    Mine is an old 2003 book so the ISBN might be different however the text I have check with the 2006 book and its exactly the same.

    Regards

    Dean :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VALUE ADDED

    Thanks, i've found it now. I've got so many books out, revision notes and past papers it's no wonder i couldn't find it :D

    Janine

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