Added Value Definition:

A concept that has become of particular importance since the introduction of value added tax; it refers to the value of the improvement made to goods or services at any particular and separate stage in their production, i.e. it is the difference between the price of a product taken in as the raw material for production, or a process as part of production, and the price at which the improved or finished product is sold either to the next operative in line or to the consumer. The term is synonymous with value added.