arvonlisään
Arvonlisä, often translated as value added, refers to the increase in the value of goods and services as they pass through the production process. It is a fundamental concept in economics, particularly in the calculation of Gross Domestic Product (GDP). When a business takes raw materials or intermediate goods and transforms them into a finished product, the difference between the value of the finished product and the cost of the inputs represents the value added by that business. For example, if a bakery buys flour for €1 and uses it to bake bread that sells for €3, the value added by the bakery is €2.
Arvonlisä is calculated at each stage of production. The total value added across all stages of production