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value added
(redirected from Added cost)

    Also found in: Financial, Wikipedia 0.03 sec.

value added

In economics, the difference between the price the customer pays for a product and the total costs of the inputs (that is, the cost of producing the product). From the value added comes the money needed to pay overheads, wages, and dividends. Added value is the basis of VAT or value-added tax, a tax on the value added at each stage of the production process of a commodity.



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