Value added

Value added - Wikipedia, the free encyclopedia: "Value added refers to the additional value of a commodity over the cost of commodities used to produce it from the previous stage of production. An example is the price of gasoline at the pump over the price of the oil in it. In national accounts used in macroeconomics, it refers to the contribution of the factors of production, i.e., land, labor, and capital goods, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The factors of production provide 'services' which raise the unit price of a product (X) relative to the cost per unit of intermediate goods used up in the production of X. Value added is shared between the factors of production (capital, labor, also human capital), giving rise to issues of distribution."