Question

what do you mean by value addition​

Answer 1

Hey dude,

❦The amount by which the value of an article is increased at each stage of its production, exclusive of initial costs.

﹫kwamis

Answer 2

Answer:

Value added. In business, the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added. Summing value added per unit over all units sold is total value added.

Explanation:

To calculate economic value added, determine the difference between the actual rate of return on assets and the cost of capital, and multiply this difference by the net investment in the business