Value Added

A-Vic

when calculating the above why? just after explantion of the equation - is it to do with vauling brough in services?

twinmeister

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

really? i had it at sales-(materials &brough in services)

twinmeister

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

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?