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A process which adds value (as reflected in price) to some commodity. Typically, value is added when labour is applied to a material, transforming it into something more useful (cf. Marxian economics). Value can be added sequentially, at different stages in the production process, as material is turned into a component, which is added to others to make a finished article, which is then packaged and marketed, for example. A value-added tax usually applies a fixed percentage to the price of a good or service; this discriminates against poorer people, who pay the same tax as the rich when they purchase the same thing. (DMS) |
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