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Value Added (VA)  Value Added is the wealth a reporting has been able to create through the collective effort of capital, management and employees. In economic terms, Value added is the market prices of the output of an enterprise less the price of goods and services acquired by the transfer from other firms.

In simple terms, it can be said as the difference between the output generated and the input consumed for generating that output. It can provide a useful measure in gauging performance and activity of the reporting entity.