arvonlisäyksestä

Arvonlisäys, or value added, is an economic concept that refers to the increase in the value of goods or services as a result of a process or transformation. It represents the difference between the selling price of a product or service and the cost of the intermediate goods and services used in its production. This difference is essentially the new value created by the business or individual undertaking the production or service provision.

In essence, arvonlisäys is the contribution that a firm makes to the final product or service. For example, a carpenter who takes raw wood and transforms it into a piece of furniture adds value through their labor and skills. The value of the finished chair is higher than the cost of the wood, the nails, and any other materials used, with the difference being the arvonlisäys.

Arvonlisäys is a crucial indicator of economic activity and productivity. It is a key component in calculating Gross Domestic Product (GDP), as it measures the total value created within an economy over a specific period. Governments often track arvonlisäys by sector to understand the contributions of different industries to the national economy. Businesses also use the concept internally to assess their efficiency and profitability, understanding how much value they are generating from their inputs. The concept applies across all sectors, from manufacturing and agriculture to services and technology.