Value added vs added value

Question

When is it appropriate to use one or another? I.e. what is the difference between the two?

Paco2004 · Accepted Answer

Oxford English Dictionary says 'value added'='added value' as a technical term used in economics

d. value added (Econ.), the amount by which the value of an article is increased at each stage of its production by the firm or firms producing it, exclusive of the cost of materials and bought-in parts and services; also attrib., esp. in value added tax [cf. G. mehrwertsteuer], a tax levied on the value added to an article or the raw material forming it at each stage during its production or distribution; cf. VAT.

1935 Social Research II. 161 We may call the value added tax a ‘refined sales tax’. Ibid., A tax which chooses as its basis of assessment the sales after deduction of all expenses for raw material and for repair or replacement of equipment, that is, a tax on the ‘value added by manufacture’. 1940 Jrnl. Polit. Econ. XLVIII. 652 A rather imperfect form of a value-added tax was incorporated by Mr. Arthur L. Johnson in his revised old age pension bill in 1939. 1951 P. A. Samuelson Economics (ed. 2) xi. 236 If we insist upon decomposing the 10 cents of final product represented by the bread into the contributions of the different stages of production, we can always do so by concentrating on the so-called ‘value-added’ at each stage of production. 1957 J. F. Due Sales Taxation vii. 125 The basic intent of a value-added tax is to tax each firm on the sum of the value which it has added in the manufacturing and distribution process. 1962 Economist 3 Mar. 827/1 The French system of a value-added tax—that is to say, a tax on net sales, or total sales less the cost of bought-in materials and components. 1967 Ibid. 21 Jan. 243/2 The aids must+bring in industries with rapid growth rates and a high value-added element. 1977 M. Walker National Front vi. 142 A Government in mid-term (which had moreover introduced the unpopular Value Added Tax the previous month).

added value (Econ.) = value added s.v. value n. 2c. Also attrib., esp. in added value tax.

1955 C. H. Morris in Proc. 48th Ann. Conf. Nat. Tax Assoc. (1956) 19 We couldn't have had a more thorough background of the added-value theory. 1963 Daily Tel. 5 Apr. 14 He is considering a turnover or added-value tax. 1974 Terminol. Managem. & Financial Accountancy (Inst. Cost & Managem. Accountants) 24 Added value, the increase in market value resulting from an alteration in the form, location or availability of a product or service, excluding the cost of bought-out materials or services. Note: unlike conversion costs, added value includes profit. 1979 Jrnl. R. Soc. Arts May 335/2 The gap between what the customer pays and what the manufacturer or supplier has to pay for the materials and other purchases is the ‘added value’ or wealth created.

Value added vs added value

Top answer

Get the Weekly English Kit 📬

Related Questions