What is Added Value?

Added value refers to the increased utility of a product as it passes through different production stages. This can be in the form of extra features on a product or service to increase its perceived value for the customer.

A business may use different ways to add value. For example, a computer seller may offer free software and accessories to enhance the value of a product for buyers.


Related Terms

What is Accounts Payable (AP)?What is Accounts Receivable (AR)?What is Acquisition Cost?What is Active External Integration?What is AP Automation?