"Value Added" refers to the enhancement a company gives its product or service before offering it to customers. This can involve improving quality, adding features, or providing better customer service. The goal is to increase the product's worth, making it more appealing to consumers and justifying a higher price. In economic terms, "Value Added" is the difference between a company's sales revenue and the cost of goods sold. It reflects the company's contribution to the economy and is a key indicator of productivity. Businesses often analyze this metric to identify areas for improvement and drive profitability.