Value Added

A-Vic
A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
in AAT Level 4 (Level 8 in Scotland)
when calculating the above why? just after explantion of the equation - is it to do with vauling brough in services?

Comments

  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
    Think value added is used as a performance indicator in NFP sector.
    All wrapped in with economy, efficiency* and effectiveness I think?
    Value of outputs in comparison to value of inputs (and shows indicator of *).
    Anyone else?
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    really? i had it at sales-(materials &brough in services)
  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
    Yep, you're right : value added = turnover-total of all bought in goods and services. I think that's the same as saying output-external inputs isn't it?

    Mmm maybe the efficiency link is wrong and I mean value for money in the NFP sector.

    Maybe value added is a measure of the profit plus internal inputs then?
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    twinmeister wrote: »
    Yep, you're right : value added = turnover-total of all bought in goods and services.

    Mmm maybe the efficiency link is wrong and I mean value for money in the NFP sector.

    Maybe value added is a measure of the profit plus internal inputs then?

    Eh?

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